2022 Forecast: Transformative Market Trends
The world has transformed over the past two years. The old normal dissolved into a new reality that hasn’t fully defined itself yet. Here’s Green Builder Media’s take on how the market trends will shake out.
In 2022, people will continue to rethink their personal and professional goals, reassessing their life objectives and economic priorities. It will remain a time of great change. No sector will remain immune.
The pandemic has turbocharged evolution throughout our entire economy, with sectors adopting digitization and enabling technologies at unprecedented rates. 2022 will be a year marked by constant reinvention, as we continue to adapt to the new realities around us.
The relationships between companies, employees, stakeholders, and customers have been forever altered, with ESG quickly becoming the foundation for strategy and investment decisions.
Millennials, who now comprise nearly 75% of the workforce, are looking for flexibility and meaning in their jobs. They are choosing to work for companies with aligned values and innovative, productive, and nurturing environments.
Strong Housing Market Growth
The housing sector is expected to continue its positive growth trajectory in 2022, despite continued supply chain challenges, high material costs, labor issues, and rising interest rates.
Even though inventory will remain tight this year, demand from millennials and Gen Zs will keep the market competitive and fast-paced. Home sales are expected to increase by 6.6%, and home prices are projected to rise by 2.9%.
Climate change considerations will become an increasingly important decision-making factor for home buyers as natural disasters and extreme weather events continue to increase in frequency, and also as insurance providers stop providing coverage in areas that are prone to wildfires, flooding, sea level rise, tornadoes, and other natural events.
To enhance climate resilience and adaptation, building codes will continue to ratchet, requiring stronger, fortified homes and communities with durable exteriors, robust roofing, stormproof windows, tiedowns, backup battery storage, and appropriate landscaping.
New Home Buyer Demands
Demand for net zero (energy, water, and carbon), all-electric, healthy, resilient, connected homes will surge, with many technologies seizing market share at exponential rates, such as:
- Panelized wall systems.
- Prefab construction.
- Heat pumps.
- Induction cooktops.
- Solar panels.
- Battery storage.
- Smart home systems
- Proactive IAQ systems
- Water monitoring devices.
- High-performance building envelope systems.
- Vehicle-to-grid technologies
Investments in Climate Tech will continue to surge in 2022, spurring the advancement of cutting-edge technologies like self-healing concrete, phase change materials, and invisible solar cells.
2022 will bring enhanced digitalization to the construction industry, with growing adoption of digital sensors that boost jobsite safety, intelligent machines that automate “hard labor” tasks, smart wearables that improve personal protection, augmented reality that enables jobsite visualization, and blockchain technology that increases workflow efficiency and accountability.
Over the course of the year, startups that offer net zero solutions will become investment unicorns, companies that execute strong, authentic ESG initiatives will be deemed the most attractive places to work, and disruption will become the norm, as we stumble our way through the incredible—and inevitable—transition to the decarbonization economy.
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