6 Home Building Trends That Will Shape the Industry in 2022 and Beyond

large group of men working on construction project

In today’s competitive market, it’s good to know exactly what emerging home building trends you should be paying attention to and how doing so will help you stay competitive. If you’ve been wondering what the home building landscape will look like in the near future and how construction pros can keep up, keep reading to find out. 

Many industry trends will be driven by pandemic-related factors. New technologies will also continue to transform the construction site, enhance the ability to win projects — and if you understand how to use it — increase profit margins. As the industry becomes more viable and the market continues to shift, knowing these construction trends will prove advantageous for any construction firm.

1. Homes Will Get Even Smarter

Smart homes are definitely on the rise. Swedish research firm Berg Insight says 63 million American homes will qualify as “smart” by 2022.

63 million American homes will qualify as "smart" by 2022.

Smart devices have become such a fundamental part of the home that they are now being built into houses from the start, where previously technology was always an addition. 

Modern homebuyers are increasingly seeing smart home technology as a necessity, so if you’re building residential structures, it’s important to take this into consideration.

If you haven’t done so yet, invest in materials and technologies that’ll make it easier to build smart homes. Also, consider partnering with the right solution providers and bring in forward-thinking team members who can help you create smarter, tech-enabled houses for today’s modern homebuyers.

2. Sustainable Construction Will Be at the Forefront

The green building materials market is projected to see substantial growth, driven by the expanding demand for eco-friendly buildings. 

Building and construction interests worldwide utilize around 3 billion tons of raw materials annually. This value is anticipated to continue to grow in the coming years due to the expanding demand for housing across the globe. The logical outcome mandates that the use of green building products and materials supports the conservation of nonrenewable resources. 

The residential division has become a significant market for sustainable construction due to heightened public awareness around ever-increasing environmental concerns. 

Suffice it to say, going green with your construction practices will serve you well in the coming years. 

Now, the “right” way to implement sustainability depends on your business and the projects you’re working on. For some companies, being more eco-friendly means sourcing better construction materials. For others, it’s all about modifying their processes to reduce waste and energy consumption. 

Figure out what “going green” means for your business and change your practices accordingly. 

Tip: BuilderGM reduces the need for paper documents by keeping all of your reports and documentation online and saving building materials by reducing human error in the overall building process. 

3. Bigger Houses Will Be in Higher Demand

While family sizes are shrinking, the world’s population is aging. There’s increasing interest in the development of larger housing to accommodate multiple generations living under one roof, as well as to provide for more affordable home care for aging generations.

Builders are getting more requests for larger homes because people need more space. Buyers are looking for space to work remotely from home, so they need an office area that provides privacy. What’s more, homeschooling has been on the rise with more people staying indoors which requires extra space for the kids to run around. 

All this to say that demand for larger houses will likely continue to rise. This home building trend won’t be going away anytime soon, so you can expect large home projects on your plate in the coming months and years.

4. Workforce Shortages Will Continue to Plague the Residential Construction Industry 

A National Association of Home Builders survey from February 2020 found that 85% of builders expect to face considerable challenges regarding the cost and availability of labor, up from 13% in 2011. Obviously, this is a concern that predates the pandemic, but now it’s gotten even graver. The economy resurfacing from the crisis is not the same as the one that preceded it. 

Workforce demand is greater in some sectors and lower in others. Workers have departed front-line jobs in some industries for positions that are less subjected to the coronavirus.

To combat this, the AEC industry needs to come up with ways to attract fresh talent. Paying competitive wages and educating people on the benefits of a career in construction can go a long way in bringing more people into the industry.

85% of builders expect to face considerable challenges regarding the cost and availability of labor

5. Technology Will Increasingly Permeate the Processes and Workflows of Construction Pros

The construction industry has made huge strides in technology, particularly in the following areas:

Mobile and Cloud Applications. These solutions provide remote access to information relevant to multiple construction projects and job sites — including drawings, delivery schedules and installation instructions. BuilderGM is a great example of a cloud application that helps construction pros access the info and tools they need from anywhere.

Drones. These automated and handy devices can be used to survey entire subdivisions or multiple job sites quickly, complete safety inspections, confirm materials are delivered and placed correctly and so much more.

BIM Technology. Construction firms have used Building Information Modeling (BIM) technology for years, but experts agree BIM is expanding in the residential sector.

With technology permeating how all businesses operate, relying on manual processes or non-integrated software won’t cut it anymore. Contractors are digitizing their operations to a competitive edge. Those that continue to avoid technology find themselves at a disadvantage, going up against entrants that can work smarter and faster.

The time is now to research and invest in construction technologies that will help position your business for success. A good place to start is to identify areas of waste or inefficiencies in your business and then finding tech solutions to automate and streamline your processes.

6. Expect the continued Rise of Prefabrication

The National Association of Homebuilders reports prefabrication and modular construction projects are starting to improve. The modular construction market has a forecasted annual growth rate of 6.9%, being valued at up to $157 billion by 2023. The prefabricated building market is likely to develop appreciably due to the rise in infrastructure and materials development. As such, the prefabricated building market is expected to grow at a CAGR of over 8% during the period 2019–2025. 

Prefabricated houses can be more affordable and can be built in less time, which is anticipated to positively impact the middle-class market. They’re also more energy-efficient and high on sustainability practices. Government-sponsored programs to provide affordable housing is another major factor shaping growth. As the productivity of construction projects has slowed down due to labor shortage, more companies are expected to utilize prefabricated construction to complete projects.

Home building is constantly evolving and it’s crucial to stay up to date on trends that help you stay competitive. Let BuilderGM support your back office operations so you can focus on staying ahead in the industry like the 6 trends mentioned above. BuilderGM is here to make you an expert in the customer journey so you don’t have to spend time doing manual tasks.