However, between 1996 and 1999 construction activity declined due to weaker population growth, slower economic growth and weaker labour markets. Since then, non-residential construction activity has remained relatively stable, but residential housing construction has dropped from its 1994 peak. Low levels of residential construction have created much pent-up demand for housing. Industry sources expect higher than average levels of residential construction and thus increased employment growth over the short term. Repairs to leaky condominiums that were built in the 1980s and 1990s will also create work in the near future for construction workers.
Construction generally is sensitive to factors such as interest rates and material costs.
Population growth and an aging population also are factors that directly affect residential construction activity. Seniors staying longer in their homes, divorce and young people expecting to form their own households are part of the changing demographics, and lifestyle changes are affecting both the quantity and mix of housing that buyers can afford or want. Many contractors and construction tradespersons rely on this residential building activity to generate business. The construction industry is recovering from the commercial building boom in the early 1990s. Current shortages of high-end office space will stimulate the market for commercial construction once again.