The US construction industry is one of the largest and most vibrant in the world and there are a handful of cities that will excel with new developments in 2021. Though the sector experienced some setbacks in 2020 due to Covid-19, it has been growing steadily in the past few years. Projections indicate that such growth is poised to continue in the coming years. As a result, annual spending on construction projects is expected to reach 1.53 trillion dollars by 2022.
This not only demonstrates the sector’s potential but also its resilience. Even amid the setbacks of 2020, construction projects for 2021 are expected to go on as planned. Investing in real estate can be highly rewarding. However, one must perform thorough due diligence beforehand. Some of the key things to be keen on are the region you are investing in and the type of project to take on.
Top Cities for New Developments in 2021
In general, the US construction sector performs well. However, there are some states and cities in particular that are expected to outperform the rest significantly.
Los Angeles New Developments in 2021
In California, Los Angeles, specifically the Inglewood area, is the most appealing region for initiating construction projects. This is due to the SoFi stadium’s completion, which is now home for the Los Angeles Rams and the Los Angeles Chargers. The stadium, built at a $5 billion cost, is a spectacle and offers a wide range of attractions for sports fans.
However, it’s not just the stadium that makes the area a great place to invest in. The whole project sits on a 298-acre piece of land where Hollywood Park was located. In the stadium area, planned developments include an artificial lake, 3000 modern residential units, a casino, a giant outdoor movie screen, hotels, restaurants, and office buildings. The idea is to offer sports fans and other revelers a holistic experience.
Due to this project, property prices in the area have been rising. But more importantly, as the area burgeons, it presents an incredible opportunity for investors. The demand for such modern apartment buildings and office space will increase. As the prices in the area continue to rise, your property will also increase in value.
San Francisco New Developments in 2021
To further demonstrate the California construction industry’s overall potential, San Francisco, another appealing destination for construction companies. The area has experienced a slow-down in construction over the past few years. This is due to reasons such as key trade labor shortages, MEP equipment shortages, and of course, COVID-19. However, its potential is undeniable.
Over the last decade or so, there have been several billion-dollar construction projects in San Francisco, each with a significant impact. Perfect examples include the Mission Bay Redevelopment, The 5M Development, Parkmerced, and Mission Rock. As the projects are completed, the area will become even more appealing to residents and businesses.
For construction companies, this sweetens the deal even further. San Francisco is one of the major tech hubs in the country. At present, startups in the Bay Area find it challenging to access office space. This, along with the projected increase in demand for office space in the coming years, makes the construction of commercial office buildings in San Francisco a very lucrative proposition.
Orlando New Developments in 2021
When most people think of Florida, the sunshine state, two things come to mind: beaches and Disney. However, if you’re in the construction sector, only one thing should run across your mind, opportunity. There are many mega construction projects in different regions of the state. Good examples include the American Dream Miami, Tyndall Air Force Base Reconstruction, and Magic Place.
However, the most lucrative of all these regions is Orlando. Projects in the area include the Orlando International Airport expansion, the Virgin Trains Orlando to Miami expansion, the 21-mile I-4 makeover, and plans to construct a 3D rocket launch complex.
Along with these, Orlando’s most appealing aspect is the projected population increase at a rate of 1,500 people per week. With this, the demand for construction projects will increase significantly. Some of the areas with the highest potential include infrastructure, healthcare, and residential construction.
Nashville New Developments in 2021
Among US metropolitans, Nashville, Tennessee, ranks high among the strongest economies. Along with economic growth, investors in the region also benefit from support from the elected city officials. Among the sectors to benefit from such economic strength and government support is the construction industry. This is why – shored by its burgeoning residential sector – the industry was only slightly affected by COVID-19.
Though the effects of COVID-19 are expected to increase in 2021, from 2022 onwards, construction volume in Nashville will increase. As more people elect to relocate to suburbs from cities such as California, New York, and Seattle, the demand for residential space in Nashville will continue to rise. This makes investments in residential construction in Nashville highly lucrative.
Raleigh New Developments in 2021
Boosted by the reopening of the economy, the Raleigh construction market is expected to shake off the impact of COVID-19 in 2021. When it comes to residential construction, Raleigh is one of the best markets in the US and was ranked first in the 2021 Emerging Trends in Real Estate report by Urban Land Institute and PwC.
The best investment model for Raleigh is in the construction of rental properties. This is due to two main reasons—an increase in the renter population due to rising in-migration and an extremely high price to rent ratio.
Construction Success Is All About Controlling the Minor Details
Despite the lucrative nature of the industry, it’s easy to make losses in construction. Beyond finding ideal locations for projects, you must also control all aspects of construction, especially the risks.
This is what Build Analysis helps construction companies achieve. We provide pre-construction analytics and construction management services to ensure your project runs smoothly and on budget. Get in touch with us to access data that will help manage risks and simplify construction management.
