Editor's Blog


Housing Mess = Pent-Up Demand For Your Services

November 19, 2008
/ Print / Reprints /
ShareMore
/ Text Size+


Earlier this week the U.S. Commerce Department released October stats indicating that new home and apartment construction have dropped to an annual rate of 791,000 units, a 4.5% decrease from September.

Certain to receive unwanted focus is the fact that this total is the lowest national annualized rate since 1959, or nearly a half-century. Further, applications for housing permits dropped to an average annualized rate of 708,000, the worst on record.

I admit these numbers are startling compared with what we were used to seeing. With the raging mortgage crisis, skyrocketing foreclosures, and continuing job losses, there’s no hope in sight for construction pros. Right?

Wrong. There is hope--lots of it. Take a quick spin on the Internet and do a search for “U.S. Population” at www.Wikipedia.org. You’ll see some drastically different numbers that I hope will bring you comfort.

In the year 2000, the U.S. population was estimated at 281 million. In 2008, our population is estimated to exceed 305 million. That’s a whopping increase of 24 million people in eight years.

What’s more, Wikipedia reports that the U.S. Census Bureau has predicted that the U.S. population will grow to 439 million by 2050. That means there will be 134 million more people over the next 41 years. They all have to live somewhere. And, except for a handful of retirees who managed to keep their pensions intact, nobody will be leaving the U.S.

There’s even better news buried in our population numbers. One quarter of our population (24.6%) are children under the age of 18. Sooner or later we’re going to push these kids--once they become adults--out of our homes. The exception, of course, is if you drop your kids off at a Nebraska hospital immediately.

Here’s what that means for the construction market. About 75 million kids will leave home over the next 18 years. They can only crash on their friends’ couches for so long, and then they will buy a house, which will become a home, which will need maintenance, upgrades and remodeling.

And these 75 million potential homeowners don’t include the millions of new immigrants who still see the U.S. as the land of opportunity. They, too, need somewhere to live.

So even though it doesn’t feel like it, demand is building for your services. At some point, this pent-up demand will provide an explosion of new business for architects, surveyors, builders, distributors and every kind of specialty contractor. It can’t come soon enough.
You must login or register in order to post a comment.

Multimedia

Videos

Image Galleries

The 2014 Experience Conference and Exhibition

A look in photos at the 2014 Experience Conference and Exhibition, which was held from April 24-26 at the Embassy Suites Convention Center and Spa in Frisco, Texas.

1/27/15 2:00 pm EST

Grow Your Business and Improve Operations with New Payment Technology

Attend this free webinar to learn how new developments in payment technology can help you close more jobs, increase upselling opportunities and improve operations.

Podcasts

The winter slow season is a great time to pursue commercial cleaning accounts and stay busy. John "the Hitman" Braun solicited questions from thousands of cleaners across the country regarding their questions on commercial cleaning accounts and answers them in this episode of the show.
More Podcasts

ICS Cleaning Specialist Magazine

CoverImage

2014 Nov/Dec

The Nov/Dec ICS features content on how to get better meter readings, a roundtable on truckmount development, neighborhood marketing and more. Also included is the annual Buyer’s Guide and Directory.

Table Of Contents Subscribe

Janitorial Work

In addition to residential and commercial carpet cleaning, do you do any janitorial work on the side?
View Results Poll Archive

THE ICS STORE

FinalCover.gif
The Carpet Cleaner's Book of Unlimited Success! (ebook)

Don’t worry about the recession or about your competition.  Now you can be the owner of over 400 ways for carpet cleaning professionals to make more money and get more jobs!

More Products

ICS DIRECTORY AND BUYING GUIDE

Director_Buyer.jpgThe premier resource and reference guide for the cleaning and restoration industries.

Click here to view

STAY CONNECTED

facebook_40.png twitter_40px.png youtube_40px.pngcrc logo

TRUCKMOUNT EQUIPMENT AND ACCESSORIES GUIDE

Truckmount.jpgEquipment listings and specifications from the leading industry manufacturers.

Click here to view