The construction sector in the United States is finally showing signs of stabilizing after experiencing a brief period of uncertainty.
As the U.S. economy grows and the demand for commercial and residential structures rises, an increasing number of investors are turning toward the construction sector to capitalize on the positive growth trend.
The current state of the residential construction sector is considerably better than what it was in 2010. However, the recovery process is not complete and the residential construction market has still some way to go before it is on a completely stable footing.
Residential buildings and housing units in cities are in high demand because of the rise in the number of millennials working in urban areas.
The migration from rural to urban areas has picked up over the last couple of years and this has caused property prices and rents in the cities to move upward. Experts predict that single-family homes will be more in demand than multi-family housing units, because of the tendency of amongst many millennials to live alone.
Thus, it would be advisable to invest in residential construction project based in urban centers. This will allow you to make a good profit in a few years,when the demand for residential properties increases further.
As compared with the residential construction sector, the commercial construction market shows more promise. It is expected that the prices of commercial real estate properties will far exceed those of residential properties in the coming years.
The effects of the recession experienced in 2008-2010 have faded into the background and the U.S. economy has shown signs of healthy medium to long term growth.
In the commercial construction sector, retail shops top the list of lucrative investment targets for investors. Unemployment figures have steadily gone down over the past couple of years— 4.3 percent in May 2017 from 4.4 percent in the previous month; and consumer spending has been gradually improving—11854.40 USD Billion in the second quarter of 2017 from 11758 USD Billion in the first quarter of 2017.
The increase in consumer spending is encouraging business people to open up new stores and service centers. This has led to a significant increase in the demand for retail units and investors and pouring a substantial amount of money into the construction of these kinds of projects.
However, retail construction is not the only area that has experienced a positive growth trend. Warehouses and other kinds of storage facilities are also in great demand due to the positive growth in the U.S. manufacturing sector. The increase in American manufacturing output has led to the growth in demand for suitable storage structures. This is why many real estate investors are seeking to park their money in construction projects involving warehouses and storage facilities.
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We offer quality asset based lending options for the construction housing units, commercial buildings, hotels, entertainment facilities, and many other types of construction projects.