New residential construction, even in the face of continued labor shortages, is expected to see a healthy 4 percent increase lasting until early 2019.
That is the conclusion of a report just released by the American Institute of Architects, which also notes that the industry remains additionally challenged by the increased costs of materials.
According to the AIA’s Consensus Construction Forecast, the strongest non-residential building sector in 2018 will be in office space, which is slated to see a 4.6 percent increase.
Retail and hotel constriction will follow, with a 4.4 percent and 4.1 percent increase respectively.
Within the institutional sector, the AIA report predicts a 4 percent increase in both education and healthcare facility construction nationally, followed by a public safety facility construction increase of 3.6 percent.
The only forecast decrease in this sector comes with religious facility construction, which is expected to be down this year by 1.1 percent.
The report, compiled by AIA Chief Economist Kermit Baker, adds: “Even eight and a half years into this current national economic cycle, the U.S. economy remains on solid footings.”
But, it adds that in 2019 “the major commercial sectors will likely see slower growth, while industrial, healthcare, and educational facilities are expected to see spending gains of 4 percent or more.”
By Garry Boulard
Get stories like these right to your inbox.