Next year will be a good one for construction, according to a trio of economic analysts who represent industry associations.
Associated Builders and Contractors Chief Economist Anirban Basu, American Institute of Architects Chief Economist Kermit Baker and National Association of Home Builders Chief Economist Robert Dietz agreed that 2017 should see solid growth. The men made their announcements at an online event Aug. 15 jointly sponsored by the associations.
“Our forecast shows single-family production expanding by more than 10 percent in 2016, and the robust multifamily sector leveling off,” Dietz said. “Historically low mortgage interest rates and favorable demographics should keep the housing market moving forward at a gradual pace, but residential construction growth will be constrained by shortages of labor and lots and rising regulatory costs.”
Basu predicted that commercial construction will be strong in 2017.
“Nonresidential construction spending growth will continue into the next year with an estimated increase in the range of 3 to 4 percent,” Basu said. “Growth will continue to be led by privately financed projects, with commercial construction continuing to lead the way. Energy-related construction will become less of a drag in 2017, while public spending will continue to be lackluster.”
Baker said members of his association are staying busy.
“Revenue at architecture firms continues to grow, so prospects for the construction industry remain solid over the next 12 to 18 months,” he said. “Given current demographic trends, the single-family residential and the institutional building sectors have the greatest potential for further expansion at present.”