REIT - North American Construction Outlook: U.S. Trump Boost Comes At A Cost For Canada And Mexico
2025-02-28 02:00:00 ET
Summary
- Trade tariffs, migration controls, elevated borrowing costs and economic uncertainty are key concerns for the sector at large in North America.
- Mexico’s residential property market typically sees less volatility than that of the US and Canada, reflecting the fact that most homes are either bought with cash, self-built, or inherited.
- We see the US as the clear winner though as a push for manufacturing reshoring prompts an increased need for energy and transport infrastructure investment.
By James Knightley & Coco Zhang
Construction sector set to face higher costs and mixed demand
At the start of 2024, we were cautiously optimistic about the North American construction sector, given that unemployment was low and risk sentiment remained positive. Nonetheless, we expected a gradual cooling in the wake of high interest rates, still-tight credit conditions, and political uncertainty from the US and Mexican presidential elections....
North American Construction Outlook: U.S. Trump Boost Comes At A Cost For Canada And Mexico