Substandard Housing In The United States

Better Essays
With the advent of globalization and industrialization, urban migration and expansion of cities have become a global trend. South American nations are amongst being most rapid urbanized countries. As more people migrate to urban areas in search of better work opportunities, the cities here are growing in size and number (Ferguson & Navarrete, 2003). This problem is native to not just Latin American countries but is a major concern for most of the developing world. As estimated by the UN (United Nations, 2016), 3 billion people or about 40% of the world population would be living in substandard housing as a result of urban expansions and population growth. This is perceived to be a direct impact of rapid urbanization and excessive strain on…show more content…
The best solution can be in those regions of the developed world where the housing deficit in not a major problem. United States of America is among the few countries with country wide standard residential construction with fulfilled market. Wood is the prime structural component of these constructions and is used in over 90% of houses (Piepkorn, 2014). This high use of wood is far more common than in any regions of the world except Canada. Increased use of prefabrication within a controlled environment of a factory have further reduced the costs and improved the process efficiency in these countries. Though the learnings may not be used directly, wood construction using techniques adapted to certain climatic conditions have proven to be successful. Thus this wood frame construction system has been gaining acceptance worldwide owing to its affordability, waste reduction, aesthetics, low negative environmental impact, flexibility in design and ease of construction (Roche, O'Connor, & Tetu,…show more content…
In 2014, the sector accounted for 3.8% of the annual Gross Domestic Product (Bureau of Economic Analysis, 2016). Over the past 15 years, the sector have experienced quite a fluctuations and endured a challenging time. Starting with a decent share of 4.5% in the year 2000, the construction sector experienced a frenzy growth with flourishing US economy till 2006. The sector was badly hit during the December 2007-June 2009 recession with a net employment decline of 19.8% (Hadi, 2011). The loss of 1.5 million employment was the largest decline amongst the nonfarm industries. Residential construction was the most badly hit with effect starting almost a year before the start of the actual recession. The market and condition of this housing industry has improved ever since but this improvement is coming at a considerably slower pace (U.S. Census Bureau, Housing units started in the United States (2000-2015), 2016). As a result, the companies need to prepare themselves to face any similar market failure in future. Development of a robust business model with diverse market penetration could be one of the options to grow and prepare for any similar catastrophe (Baack, Harris, & Baack,
Get Access