In the last several years, US construction industry growth rates have shown a general upward trend. Thanks in part to overall economic growth, this year is shaping up to bring more of the same favorable environment for your firm.
More Residential Building
According to data from Dodge Data & Analytics, U.S. construction is set to see a gain of 6 percent over the course of the year. Certain segments of the industry are especially likely to benefit. The market for single-family homes is one of these. With mortgages easier to obtain and would-be home buyers gaining confidence, the amount spent on single-family homes is predicted to increase by 20 percent. Investments in home renovations, particularly of luxury homes, will further add to the gains you’ll see in this area.
Multifamily housing has been a booming market recently, and while growth in that market is likely to slow down some, the market will continue to advance. The expected 7 percent increase in spending on multifamily housing is still a positive even if it isn’t quite the abundance of the past few years when growth rates rose above 10 percent.
The overall trend is for the rate of expansion in the multifamily housing market to ease while growth in the single-family housing market picks up momentum.
Modest Growth in Commercial and Public Buildings
The commercial building segment is also expected to improve. Technology and finance firms are flourishing in today’s economy, and many are seeking room to expand. Their demand for office space is a large part of what’s fueling an anticipated 11 percent increase in commercial building.
In the institutional building segment, Dodge Data & Analytics figures predict a spending increase of 9 percent. Much of this comes from the increased demand for K-12 schools brought on by a recent improvement in financing options for these facilities.
Public works, on the other hand, aren’t fairing so well, and little growth will be seen in the coming year outside of environmental public works, such as water treatment facilities.
To find out about US construction industry growth rates in more detail, contact Construction Monitor.