Mansfield Marketing Blog & News

After an up-and-down 2020 that was largely influenced by the onset of the COVID-19 pandemic and a 2021 that was marked largely by recovery, construction is up across the board in 2022 - and the Houston area is no exception. Part of the reason for an increase in new construction starts in the Houston area is population growth. The greater Houston area saw the third-most population growth in a period that ranged from July 2020 to July 2021, with only Dallas and Phoenix growing more. And with more employers relocating or opening locations in the Houston area, there's an increased need for commercial construction services. In this post, we'll take a closer look at Houston's 2022 construction outlook:

A Construction Snapshot of Houston

Let's start by taking a glance at the Houston construction forecast for 2022. As a reminder, the greater Houston area includes nine counties, consists of about 10,000 square miles and is driven by four economic pillars: oil and gas, healthcare, the seaport and NASA. According to data from the U.S. Bureau of Labor Statistics, Houston is a national leader in building permit issuance for new construction starts, runner-up only to the larger Dallas and New York City markets. Furthermore, Houston has been named the second-best city for construction workers by Industrial Paint and Protection magazine. This is all good news for the Houston construction market and for construction workers in the city.

California Migration

Due to high taxes and greater regulations, many west coast companies are either completely fleeing or opening up locations in and throughout Texas - including in Houston. This is a trend that began during the pandemic and is seemingly continuing years later. Some notable companies include Hewlett Packard, Sun Haven, Axiom Space and Maddox Defense, among others. When companies relocate their headquarters or open new locations, there's a demand either for a new build or a fit out in an existing office.

Challenges

One potential challenge for Houston construction is the overbuilding that occurred prior to the pandemic in the retail and office sector. According to Houston Public Media, there are currently about 70 million square feet of unoccupied office space in the greater Houston area (based on data from December 2021). With an expected slowdown in commercial construction, firms that have a significant market share in this sector may be forced to chase work in other markets to stay competitive and meet profitability goals.