Commercial Builders Turn to Residential Sector as Fallback
As residential construction booms, commercial projects face delays, closures, and even cancellations amid little demand. Some commercial contractors are going where the demand is and falling back on residential construction to buoy their companies, reports Construction Dive. One New York City-based construction company saw such a demand for residential construction, the CEO said the tables have turned and now clients are seeking out their services, rather than the company chasing new commercial clients. When another NYC contractor focusing on restaurants and gyms knew the demand for new dining and fitness locations was slim, he pivoted to affordable housing.
The impact of the pandemic on residential and nonresidential construction has been anything but even. While many commercial projects have been delayed, shuttered or canceled completely, homebuilding has boomed, as buyers seek single-family homes in less densely populated areas away from urban centers.
Employment levels in the residential construction sector are back to pre-pandemic levels, while nonresidential construction has only recouped 60% of the jobs lost from February to April of 2020, according to the Associated General Contractors of America.
The result has been commercial contractors soaking up excess demand for housing jobs.