Happy Thanksgiving and welcome to our November 26th, 2024 Commercial Pulse Report preview!
As the economy continues to evolve, the latest Commercial Pulse Report from Experian highlights some interesting trends in the housing market and for the many small businesses in the construction industry. These sectors are navigating complex challenges, showcasing resilience in the face of rising costs and changing market dynamics. Check out this week’s report for our deep dive on construction. Watch our short video below for a summary of what the latest report includes.
Construction Industry Highlights:
- 🔧 Adaptation in Financing: Construction businesses are shifting from term loans to commercial credit cards to manage costs.
- 🏗️ Controlled Delinquencies: While rising, construction delinquencies remain much lower than other industries, showing sector strength.
- 📊 High Demand Drives Growth: Despite challenges, the sector thrives due to strong housing demand.
Housing Market Highlights:
- 🏠 Affordability Challenges: Housing costs are rising faster than incomes, forcing many households to allocate more of their earnings to housing.
- 📈 Rent Inflation Soars: Since 2020, monthly rents have increased by 127%, adding strain to renters nationwide.
- 💸 Mortgage Payments Surge: High property prices and 6.4% mortgage rates have driven average payments to record highs.
- 🌟 Resilient Demand: Despite challenges, home sales rose 5% year-over-year, signaling robust buyer interest.
- 🚀 Relief Ahead? Potential interest rate cuts and increased homebuilding activity could balance the market.
