Overall U.S. construction starts in 2012 will remain essentially flat with 2011 figures, according to McGraw-Hill Construction, part of The McGraw-Hill Companies. Construction starts in 2012 are expected to total $412 billion, following the 4 percent decline to $410 billion predicted for 2011.
Overall U.S. construction starts in 2012 will remain essentially flat with 2011 figures, according to McGraw-Hill Construction, part of The McGraw-Hill Companies. Construction starts in 2012 are expected to total $412 billion, following the 4 percent decline to $410 billion predicted for 2011.
McGraw-Hill detailed these findings and more in its 2012 Dodge Construction Outlook. Other highlights of the report include predictions that:
- Single family housing in 2012 will improve 10 percent in dollars, corresponding to a 7 percent increase in the number of units to 435,000. This is still a low amount, as the excess supply of homes due to foreclosures continues to depress the market.
- Multifamily housing will rise 18 percent in dollars and 17 percent in units, continuing its moderate, upward trend.
- Commercial building will grow 8 percent. Warehouses and hotels will see the largest percentage increases, but improvement for offices and stores will be modest.
- The institutional building market will slip an additional 2 percent in 2012, after falling 15 percent in 2011. The tough fiscal environment for states and localities will continue to dampen school construction, and the uncertain economic environment will limit growth in healthcare facilities.
"The construction industry has struggled to see recovery take hold over the past couple of years," said Robert Murray, vice president of economic affairs, McGraw-Hill Construction. "After plunging 24 percent in 2009, new construction starts leveled off in 2010 and have hovered within a set range during 2011. The backdrop for the construction industry is the fragile U.S. economy, which continues to see slow employment growth, diminished funding from federal and state governments, and pervasive uncertainty."
McGraw-Hill released this video overview of the report:
The 2012 Dodge Construction Outlook was presented at McGraw-Hill Construction's 73rd annual Outlook Executive Conference in Washington, D.C. Copies of the report can be ordered here for $495.
