Residential Construction Market Research Articles

Occupational risk management in construction supply chain

The building is historically a driver of the economy, creating thousands of direct and indirect jobs, moving a huge chain of suppliers of raw materials, supplies and services, besides building a country’s infrastructure and the homes of millions of people. But working conditions in this sector that is so important to the country are not the best, exposing workers to risks of work accidents and occupational diseases. Therefore, this study sought to present the main occupational hazards in the construction industry, discussing alternatives for effective risk management by reducing the rates of accidents and illness among workers. In this research, case studies were done in small and medium-sized construction sector facing the residential construction market. It was also proposed solutions for the implementation of risk management and occupational health and safety for businesses to succeed and lower the rates of accidents at work, health and safety, and quality of work life in these companies.

The Relationship between ROP Funds and Sustainable Development—A Case Study for Poland

The aim of this research is to analyse the correlation between public intervention in Poland within the Regional Operational Programmes and the key macroeconomic variables for the sustainable development of regions, i.e., the labour market, with particular emphasis on the unemployment rate and the level of employment; the average monthly remuneration; the residential construction market, with particular emphasis on the number of permits issued for the construction of apartments and the number of apartments under construction. The research and the analyses carried out on the basis of the above-mentioned aspects made it possible to indicate the relations between the studied macroeconomic indicators and the EU funds spending in Polish provinces, which will enable the implementation of the sustainable development policy. The capitals used in the research process are very important components of the region’s and country’s sustainable development. In the research, a calculation methodology was applied based on the analysis of time variability of the examined determinants, their correlation and regression relationships. The tools and methods of data analysis used allowed the quantification of the relationship between the macroeconomic determinants studied and the pace and value of payments made. The conducted analyses have shown a positive influence of the payments made in Poland within the framework of Regional Operational Programmes on selected macroeconomic indicators, i.e., regional economic and social-institutional capitals. The research results obtained may have a practical decision-making aspect for regional and national authorities responsible for the disbursement of EU funds.

Model-Based Dynamic Forecasting for Residential Construction Market Demand: A Systemic Approach

According to the previous research, proper demand forecasting could help construction-related firms in effective planning for future market changes. However, existing market demand forecasting models are somewhat limited, and most of them bear some critical shortcomings. This research aims to develop a forecasting model for the Korean residential construction industry using system dynamics. In developing the market forecasting model, this research uses variables that significantly impact future construction market change. Many of the existing models do not include as many variables as this model, and none of them have considered complex interlocking effects among these variables. This model is also the first model using a system-based approach by looking at the target industry as a ‘one complex system’ rather than focusing on individual variables’ impact on future market changes. By employing system dynamics, it is possible to consider qualitative and quantitative aspects and produce long-term market forecasting results. The developed market forecasting model consists of two main modules, the first being a prediction module for the grassroots construction market and the second for operation and maintenance (O&M) and the demolition market. Sixteen input variables are grouped into four categories: social, economy, regulation, and past market size among over 25 identified variables. The model utilizes a mathematical function system using the designed feedback loops in producing future market forecasts. Based on the validation tests with past market data, it turns out that the model is reliable, with the determination coefficient (R2) being over 0.7 on all tested occasions. According to the model’s forecasting results, the Korean construction market’s size is expected to be 231 billion won in 2015 and 286 billion won in 2030. However, the O&M market’s growth rate is expected to be higher than 180%, which is much bigger than those of the grass-root and demolition markets. Thus, this research model is realistic according to the construction paradigm change. This research is considered one of the pioneering studies in construction market forecasting by employing dynamic inter-relationships among various input variables. Therefore, the market forecasting results can be interpreted as more practical and can provide more insights to the construction industry stakeholders. The model is envisioned to provide the public sector with useful guidelines in preparing future public market supply strategies such as construction budget allocations. It would also be helpful for the private sector to develop more proactive and accurate demand strategies for timely decision-making.

An analysis of South African sawmilling competitiveness

The South African sawn timber market supply and demand are in equilibrium and significantly associated with the local residential construction market. During the great financial crisis (GFC), the local residential construction market contracted. This caused a reduction in sawn timber demand, price and margin. Subsequently, the competition between sawmillers increased and led to the closure of 41 mills. This study included a sawmilling competitiveness analysis for South African sawmills taking part in the Crickmay Intermill comparison from 2004 to 2017. The Crickmay Intermill comparison assumes that nett margin is the measurement for competitiveness. Spearman correlation tests were used to compare performance measurements with nett margin. This and other studies found significant associations between the implementation of value-adding strategies and competitiveness. Sawmills that effectively create more value from the raw material tend to be more competitive. In contrast with other studies, our research determined that people costs are significantly associated with competitiveness. However, like other studies, it was confirmed that labour productivity is not associated with competitiveness. This study argues that South African sawmillers can increase competitiveness by implementing value-adding strategies, implementing competitive remuneration policies and increasing the sawn timber usage intensity in South Africa.

ANALYSIS OF TURKISH RESIDENTIAL CONSTRUCTION MARKET DYNAMICS FOR THE PERIODS OF 2010–2015, 2015–2019, AND PROJECTIONS FOR THE FUTURE

The Turkish residential market supported by macro-economic developments is of great importance for the country's economy and the construction industry. The main purpose of this study is to analyze the Turkish residential construction market dynamics, especially in terms of price-cost and supply-demand regimes and conduct future projections. For this purpose, analysis of construction cost and residential price indexes, total and mortgaged residential sales, and construction and occupancy permits were evaluated utilizing institutional data. In addition, positive and negative effects of the changes in the residential prices in the macro scale were examined. After, conducting the residential price and cost change analysis for between 2010-2023, future stock volume and residential market projections were carried out. As a result of the analysis, we can divide the residential market into 3 periods: positive development period between 2010 and 2015, the recession period from 2015 to 2019, and the period after 2020. In the projection, depending on the supply contraction and the results of demand changes, price and cost increases, the current residential stock volume will reach its lowest level by 2023. Following this, the last period is expected to reach a more balanced residential market shaped by need-based purchases rather than individual investments.

A Preliminary Implementation Framework of Building Information Modelling (BIM) in the Algerian AEC Industry

The construction industry is one of the most growing sectors worldwide, it plays a great role in boosting the economy. The construction sector in Algeria has recently witnessed an upward growth, due to the Algerian government’s vision to develop economic activity and boost the residential construction market. On the other hand, the Algerian construction market is suffering from the lack of efficiency; projects delay and less quality of projects delivery. It becomes very necessary to find a way to improve these inefficiencies by adopting new approaches and technologies. Building Information Modelling (BIM) is becoming a widespread and common approach in the design, construction and maintenance of building facilities as BIM reduces waste, improves construction quality and enhance collaboration among the construction stakeholders. Hence, it becomes necessary to start gradually introducing BIM to the Algerian construction industry in order to improve its productivity. This paper addresses BIM implementation in the Algerian AEC industry and proposes a preliminary framework towards its implementation. Through a questionnaire survey, we explored the BIM capabilities, BIM awareness and BIM maturity of the Algerian AEC players. Based on the questionnaire findings and literature review, this paper proposes an effective BIM implementation based on both levels of macro-adoption and micro-adoption. The framework developed is based on three main aspects comprise of technology, process and policy. This study is considered as the first implementation framework of Building information modelling in the Algerian AEC industry. The framework proposed will be used as a reference for the Algerian researchers and professionals.

South African log resource availability and potential environmental impact of timber construction

We investigated the South African log resource availability and the potential global warming impact of an increasing wood-based residential building market. We have shown that, with the use of wood resources currently exported as chips, as well as planting trees in areas that have been earmarked for afforestation, a sustainable residential building market, where all constructions are wood-based, is possible. However, in the short term, imports of wooden building components might be necessary if rapid growth in woodbased building occurs. Basic modelling analyses show that if the market share of wood-based buildings increases to 20% of new constructions, the embodied energy and global warming potential of the residential building sector could decrease by 4.9%. If all new constructions were wood based, the total embodied energy and global warming potential of the residential building sector could decrease by up to 30%.
 Significance:
 
 A novel finding of this paper is that sufficient local log resource options exist to realise a sustainable all-wood residential construction market in South Africa.
 The likely implications in terms of embodied energy and potential global warming impact of using wood-based materials for residential buildings compared to conventional brick and mortar or reinforced concrete buildings were also analysed and found to be favourable.

Role of Predisaster Construction Market Conditions in Influencing Postdisaster Demand Surge

The postdisaster survival of cities and communities depends on their capabilities to reconstruct and repair damaged buildings following large-scale natural disasters. The socioeconomic phenomenon of increased construction costs following large-scale natural disasters, also called demand surge, cripples our capabilities to recover from disasters effectively. Labor cost fluctuation following natural disasters is known to be a driving factor in demand surge measurement. The relationship between construction labor wage fluctuations and disaster’s magnitude has been defined in the literature. Despite the significant role of the construction industry in postdisaster labor cost fluctuations, the relationship between predisaster construction market conditions and postdisaster labor cost fluctuations has not been studied. The objective of this study is to quantify the relationship between predisaster residential construction market conditions and residential labor wage fluctuations following weather-related disasters. The historical county-level data on five construction market indicators (establishment count, contribution level, average weekly wages, employment level, and building permits) prior to disasters along with disaster magnitudes (property damage) were collected for more than 35 of the largest weather-related disasters (floods, storms, and tornadoes) in the United States. These disasters affected more than 400 counties from 2007 to 2014. Residential building labor cost changes were first measured for counties impacted by weather-related disasters. The multiple linear regression method was then utilized to quantify the relationship between predisaster residential construction market indicators and the percent change in residential building labor wages after weather-related disasters. The results show that changes in residential building labor wages following weather-related disasters depend on the predisaster level of construction market indicators and the interactions between indicators. It is expected that the results of this study will help cost engineers to prepare more accurate bids in the volatile postdisaster construction markets and help capital planners and postdisaster risk-mitigation agencies to identify the more vulnerable construction markets.

BIM in Multifamily Design & Construction

In 2014, the National Association of Homebuilders conducted an initial survey about the use of Building Information Modeling (BIM) in residential construction. They found that BIM had not been widely adopted, but there was interest in future use. Four years later, the authors, Prof. Ghosh Dastider and Matt Jefferies at Washington University in St. Louis used a similar methodology to see what has changed. They found a significant increase in BIM’s application in the multifamily residential industry. Based on data collected from the re-conducted survey, the authors concluded with the future predictions on how use of BIM will accelerate in residential construction market in next few years. Few significant findings indicate increased use of BIM among contractors along with design built firms, as well as during the construction phase and life cycle analysis.

Simple and accurate temperature correction for moisture pin calibrations in oriented strand board

Oriented strand board (OSB) is commonly used in the residential construction market in North America and its moisture-related durability is a critical consideration for building envelope design. Measurement of OSB moisture content (MC), a key determinant of durability, is often done using moisture pins and relies on a correlation between MC and the electrical resistance (R) of the OSB between the pins. Early work on these correlations focused on solid lumber and recent correlations for engineered wood products lack data regarding the temperature effects on R. We provide data on 1001 resistance measurements in OSB, sourced from three different locations, over a wide temperature (−17 °C–70 °C) and relative humidity (35%–95%) range. This data, in conjunction with gravimetric MC readings, is used to test existing correlations and support a new simple, accurate formula for calculating MC from resistance and temperature measurements in OSB.

The Consumption Ratios for Aggregates to Concrete in Single-Family Houses

Abstract Natural aggregates are widely used both in ribbon and volumetric construction. In respect of quantitative demand, ribbon construction has been definitely much more receptive in recent years. After completion of implementation of large infrastructural investments, co-financed by EU funds, volumetric construction will become one of major directions of sale of aggregates. Due to a lack of accurate information about consumption of aggregates in this construction segment, it is important to estimate the unit consumption ratios in different types of volumetric structures. The thesis presents the statistical image of demand for aggregates depending on selected features of single-family buildings. The basis assumed for determining unit consumption of aggregates is the amount of concrete juxtaposed in design documentations and average content of aggregates in concrete mix. Consumption of aggregates has been defined in respect of such features of a building as: building area, total area, usable area, volume. Also, consumption was assessed depending on structural solutions of ceilings and major architectonic features: the number of storeys above ground and underground. The conducted analyses imply that consumption of aggregates varies according to not only the size of a house under construction, but also the architectural-constructional type of the building. In most cases, the consumption of aggregates to concrete correlates most favourably with the volume of the buildings. The average value of the aggregates consumption ratio is 0.21 Mg per 1 m3 of building volume, with the standard error of the mean equalling 0.003. As regards particular building types, the obtained mean values have a have a lower coefficient of variation, and similar values standard error, especially for the index calculated relative to the usable area. Therefore, it is justified to use these ratios interchangeably. It is possible to prepare regional demand scenarios for aggregates, especially gravel-sand aggregates which are the primary type used to produce concrete, using statistics of the residential construction market, including detached single-family construction, which have been kept for years, supplemented with the identified aggregate consumption ratios.

SUCCESS AND FAILURE IN INDUSTRIALIZED PREFABRICATED HOUSING

Prefabrication and modular production of housing is one of the oldest “new topics” in architectural discourse. Prefabrication in North America has been underway continuously since the 17th century. It flourishes in economic booms in remote locations, and as an interim solution to disaster relief, but unlike the giants of the automotive industry, innovators in residential prefabrication seldom succeed, or endure. This research is about using the historical record to understand the characteristics of failed and successful residential prefabrication systems. A literature search was undertaken to identify the key professional publications and governmental programs impacting the topic. Professional Journals, Federal reports, and books published by prefabrication advocates were examined for the answer to “What happened to housing prefabrication as a mode of residential construction innovation?” It was discovered that proprietary package systems or kits employing non-wood-based materials and connectors required sophisticated industrial tooling, management and production/shipping methods that cannot be successfully amortized in the competitive residential construction market. Perhaps the most important discovery was that compatibility and extensibility within the residential building culture are the key indicators of longevity/success in the marketplace.

Resilient Built Environment: New Framework for Assessing the Residential Construction Market

AbstractThe residential construction market remains vulnerable to the environment. The architecture, engineering, and construction industry now recognizes natural hazards as an increasing threat to the vitality of the built environment. Resilience has become a central concept for assessing environment adaptations; however, how to assess resilience remains elusive. In an effort to solve this problem, the present work proposes a conceptual framework of resilient built environment (RBE), which focuses on one piece of the resilience puzzle: residential construction in the built environment. This paper also provides a case study to demonstrate how to use the RBE framework to assess the state-level minimum resilience performance for the U.S. residential construction market. Findings from the study indicate that 53% of states have adopted building codes with a satisfactory capability for resilience, which raises a need for new policies on resilience management. The case study validates the RBE framework as a val...

Occupational risk management in construction supply chain

The building is historically a driver of the economy, creating thousands of direct and indirect jobs, moving a huge chain of suppliers of raw materials, supplies and services, besides building a country's infrastructure and the homes of millions of people. But working conditions in this sector that is so important to the country are not the best, exposing workers to risks of work accidents and occupational diseases. Therefore, this study sought to present the main occupational hazards in the construction industry, discussing alternatives for effective risk management by reducing the rates of accidents and illness among workers. In this research, case studies were done in small and medium–sized construction sector facing the residential construction market. It was also proposed solutions for the implementation of risk management and occupational health and safety for businesses to succeed and lower the rates of accidents at work, health and safety, and quality of work life in these companies.

Eco-labeled wood products in the U.S. residential construction industry: Architects’ awareness and usage of certified wood and green building programs

The use of environmentally friendly building materials has experienced slow growth within the residential construction market due to higher cost and low availability of certified wood. The development of green building programs (GBPs) marked the beginning of the effort to adopt energy-efficient design guidelines and utilize eco-friendly renewable materials in structures. These programs were targeted at reducing environmental impacts by integrating eco-friendly materials into the design and construction of buildings, including promoting the use of environmentally certified wood products (ECWPs) harvested from sustainably managed forests. This research was designed to determine which attributes influence architects’ decisions to use environmentally certified wood products in residential construction projects and how this might influence their perceptions and use of green building programs. The results indicate that architects who have participated in a GBP were more likely to have used ECWPs. The material attributes that influence architects’ selection of materials are mainly related to economics and function as opposed to environmental friendliness. These results will help to inform and broaden the understanding of issues that influence the adoption and utilization of environmentally certified wood products, and identify some of the factors that can contribute to their continued growth in the U.S. marketplace.

국내 건설경기 변화와 해외건설수주 간의 관계성 분석

Abstract : This study undertakes a comparative analysis of the correlation between the condition of the domestic construction market and the expansion of overseas projects within construction companies, based on the vector error correction model. The analysis results verified that, in the post-IMF crisis period, domestic construction companies took on more overseas projects only when the residential construction market slowed down. Compared to the pre-crisis period, construction companies grew more responsive to the condition of the domestic market for residential construction, and they took on more overseas construction projects when the domestic market slumped. This is because the business portfolios of Korean construction companies’ render them highly vulnerable to the condition of the residential construction market. When the domestic residential market slows down, the business condition of construction companies quickly takes a turn for the worse, and to cope with this, they turn to overseas projects to compensate for the slowing of the domestic market. As the analysis shows, expanding overseas construction projects as a way to turn around business condition amid a slow residential construction market actually undermines the management of the companies even further. In other words, shifting business focus toward an overseas market during a hard time might be useful for securing cash flow, but might not help to restore profitability. Thus, construction companies need to carefully manage their level of business diversification to ensure strategic flexibility.

Product Life Cycle of the Manufactured Home Industry

Residential construction consumes an estimated 26 percent of the total U.S. wood harvest and thus plays an important role in the forest products value chain. While being a relatively small part of the U.S. residential construction market, the factory-built residential housing industry, originating from manufactured homes (e.g. mobile homes), is embracing emerging industry segments such as modular or panelized homes. Since indications exist that factory-built home production is slated to gain a more prominent role in the U.S. construction markets at the cost of traditional stick-built production, the factory-built home industry sub-segment is of considerable importance to the forest products industry. This research looks at manufactured home producers as a benchmark for analyzing the current economic state of the industry and discusses competitive strategies. The analysis concludes, through macroeconomic modeling, that manufactured homes are in the declining stage of their product life cycle due to changes to the U.S. residential construction sector and the factory-built home industry and by advancements of rival industry-segments. As market share continues to decline, firms operating in this industry-segment seek to either hedge their losses through product diversification strategies or remain focused on strategically repositioning the manufactured home segment.

Best Practices for Dealing with Price Volatility in Utah's Residential Construction Market

Price volatility is a problem that affects each discipline involved in the residential construction industry. The myriad factors that can have an impact on construction costs are such that it is extremely hard to anticipate upcoming changes in a timely and accurate way. When prices fluctuate during the course of a project, estimates become erroneous and completion of projects within expected budgets becomes difficult. Increasing prices typically leave contractors with the majority of the risk burden due to the enforceability of contracts were likely executed months prior. Numerous methods have been developed for managing the risk of price volatility. The various methods available are implemented based on the disciplines involved, the types of contracts being used, and the existing market conditions. Typical practices transfer the risk of price volatility to other involved disciplines, be it the owner, the contractor, subcontractors, or suppliers. However, no method has proven completely effective at removing the risks associated with price volatility. Involved disciplines need to utilize a combination of best practices to protect themselves. They need to coordinate and communicate with the other disciplines to ensure that the risk of price volatility is appropriately accounted for and managed throughout the construction process.

Inclusive housing, a pattern book: design for diversity and equality

Inclusive Housing focuses on housing that provides access to people with disabilities while benefiting all residents and that incorporates inclusive design practices into neighborhood and housing designs without compromising other important design goals. Emphasizing urban patterns of neighborhood development, the practices outlined here are useful for application to all kinds of housing in all types of neighborhoods. The book addresses trends that have widespread significance in the residential construction market and demonstrates that accessible housing design is compatible with the goals of developing livable and healthy neighborhoods, reducing urban sprawl, reducing reliance on fossil fuels, and ensuring that the benefits of thoughtful urban design are equitably distributed. Inclusive Housing recognizes that to achieve the goals of urbanism, we must consider the total picture. The house must fit on the lot; the lot must fit in the block; and the block must fit with the character of the neighborhood. Its context-sensitive approach uses examples that cover a wide range of housing types, styles, and development densities. Rather than present stock solutions that ignore the context of real projects and design goals, it explores how accessibility can be achieved in different types of neighborhoods and housing forms, all with the goal of achieving high-quality urban places.

The Italian residential construction sector: an input-output historical analysis

Two sets of input-output tables are employed in this paper to analyse the role of the Italian residential construction sector in the national economy. The analysis focuses on changes in construction technology over a period of some 30 years, ending in 1985, the last year for which such data are available. A set of eight-sector input-output tables is used to show the weakening of the residential construction sector's effect on the economy as a whole. This trend is caused by the progressive saturation of the residential construction market and the transformation of the overall Italian economy. As expected, the achieved maturity of the Italian economy is accompanied by the growing importance of maintenance and repair construction because of the ageing building infrastructure. Another set of 24-sector input-output tables is used to analyse the input and output profiles of the residential and non-residential construction sectors, by selecting key supply industries. Significant differences are reported in the technology of the residential sector, with a shift towards services and away from manufacturing inputs. Finally, the main findings and directions for future research are summarized.