Between barriers to entry and the cost of land, labor and materi- als, getting a project off the ground is becoming increasingly difficult. Nevertheless, many developers are finding a way to
break ground and top off.
Indeed, the 2017 Dodge Data & Analytics Construction Outlook predicts total US construction starts for 2017 will advance 5% to $713 billion, following gains of 11% in 2015 and an estimated 1% in 2016.
Specifically, single-family homes will rise 12% in dollars; multifamily
housing will be flat in dollars and down 2% in units; commercial building will increase 6%; institutional building will rise 10%; and manufacturing plant and public works construction will both advance 6%.
“The construction industry has now entered a more mature phase of
its expansion, one that is characterized by slower rates of growth than
what took place during the 2012-2015 period, but still growth,” says
Robert Murray, chief economist for Dodge Data & Analytics. “Since the
construction start statistics will lead the pattern of construction spending, this means that construction spending can be expected to see mod-
erate gains through 2017 and beyond.” By Jennifer LeClaire
The Business of
IT’S BECOMING TOUGHER TO GET
PROJECTS TO PENCIL OUT, BUT
SAVVY DEVELOPERS ARE GETTING
CREATIVE TO GET COMMERCIAL
REAL ESTATE OUT OF THE GROUND