For business owners looking to expand or start anew, knowing the housing and construction statistics of an area will prove invaluable. Housing statistics can illustrate how much new construction has taken place from year to year and enable you to analyze the housing market of an area compared to the rest of the nation.
By carefully analyzing construction industry statistics, you can get a keen insight into your potential business market. House construction statistics and commercial construction statistics can give you insights into:
1. The growth potential of the area. If commercial construction statistics show more people are moving in, it could be a great place for a future business.
2. The economic viability of the area. If home construction statistics include evidence that residents can afford to pay for new houses, it could be a good sign of the potential wealth of the area.
3. The availability of commercial real estate. It will increase your bargaining power if you know the commercial construction statistics before you make your purchase.
Action Steps
The best contacts and resources to help you get it done
Use government reports to find housing construction statistics
The federal government keeps close tabs on U.S. construction statistics and is a great source for world housing statistics as well. There are several agencies that can give you an insight into the market.
I recommend: The
U.S. Census has several reports including the number of building permits issued, housing starts and housing completions. Construction employment from the
Bureau of Labor Statistics can give you a good idea of the health of the construction market. When employment is good, so too is the rest of the business. If you are looking for specific information about a certain state, try contacting the
Housing and Urban Development office in the state of interest.
Use national associations and businesses to find statistics on home construction
Construction associations and research firms are great outside sources to help you find homebuilder statistics. Often times these sources are more user-friendly than the government studies, but you may have to pay for them.
I recommend: The
National Association of Homebuilders has several reports on house building statistics. The
National Association of Realtors tracks home construction statistics and puts the numbers into perspective for potential homebuyers. Companies like
Real Capital Analytics, for a fee, will let you use their powerful search engines to break down the construction statistics in which you are most interested.
Find foreclosure data to give you insight into the housing market
The number of foreclosures in an area almost always directly impacts the area's housing and construction statistics. If a market is saturated with foreclosures, typically the amount of new construction in that area falls. As those homes are absorbed by the market, new construction often picks up. Foreclosure data will give you a good insight into the area's potential.
I recommend: The
Mortgage Bankers Association is a great place to find information on foreclosure rates and mortgage delinquencies.
RealtyTrac keeps close tabs on national foreclosure rates and releases its information through press releases.
Tips & Tactics
Helpful advice for making the most of this Guide
- Finding statistics on housing construction should just be the starting point of your research into a potential market. Talk to the area's chamber of commerce to get more statistics and information that you will need.
- If you are very interested in office construction statistics, remember that construction stats can change as quickly as the market trends in a particular area.
The official source of Housing and Construction Statistics is
the Housing and Construction Statistics page at Business.com
Related Resources from Business.com
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