When the housing market bubble burst in 2007, it had a devastating effect on an industry that rely on the American dream of home ownership. It is one of two key sectors in this economy that provide the revenue flow to prop up this capitalist society. The other industry is manufacturing. With domestic manufacturing giving way to outsourcing, many were left to wonder if housing would ever rebound to what it once was. This question vibrate the loudest among those who are key to housing, building designers and residential architects.
As 2010 came to an end, so did another dismal year in the residential construction industry in the states. Despite all the talk of 2010 being the year we will see improvement, the reality is that the home plan and residential design industry remain flat for yet another year. REO (Real Estate Owned) property still clog the pipelines of construction as banks struggle to clear out their inventory of foreclosed properties. And with so many still out of work, this self-fulfilling housing slump appears to have no end in sight.
Going into 2011, we come upon five years in which the housing market has dragged along the bottom as our economy continues to struggle and move at a snail’s pace. While so-called economist speculate yet again about how this year is expected to be better than the previous year, let’s remember how well their predictions turned out so far. The fact of the matter is that we won’t see a turn in housing until bank inventories clear out. If we continue to hear about more foreclosures, then our time in this down market is indefinite. Simple supply and demand is what it boil down to. Many building designers and residential architects have succumbed to this terrible housing market with many more hanging in the balance. If we continue along this path of record low housing construction and home building, many more design professionals may be doomed.
This particular time in our history will be remembered for quite a while. Even though the house construction market looks bleak, it will recover. When the job market strengthens, and it will eventually, the housing crisis will correct itself soon enough. The rise of home construction will see us through these tough times and bring new opportunities for many residential architects and building designers.