In our last update on the residential construction market in September 2022, the Global Specialty Insights Center flagged a likely slowdown and weakness in housing. Since then, our outlook has turned slightly more optimistic. Today, we'll also cover the nonresidential construction market before discussing the implications for regional banks.

Residential Construction Outlook
Residential construction grew at a healthy rate following the global financial crisis.
Up until the onset of COVID-19, the housing market and residential construction were showing healthy and steady improvements. In August 2010, the U.S. transacted 3.962 million housing units on an annualized basis. This included 282,000 new home sales (construction) and 3.68 million existing homes. The average price of a new home was $268,800, and an existing home was $177,300.