Economists from Associated Builders and Contractors (ABC), American Institute of Architects (AIA), and National Association of Home Builders (NAHB) predicted continued construction industry growth in 2016 during a joint economic forecast web conference Tuesday.
“The nonresidential construction sector gained momentum over the last year and should continue to expand into 2016,” ABC Chief Economist Anirban Basu said. “The construction industry has benefited from increased stability stemming from low materials prices and greater certainty regarding federal budgeting and monetary policy, although a lack of appropriately skilled labor will remain a challenge for contractors. ABC predicts the nonresidential construction segment will experience 7% nominal growth in 2016.”
“Led by tremendous demand for energy-efficient spaces, spending on home improvements is on track to reach an all-time high by year’s end,” AIA Chief Economist, Kermit Baker, Hon. AIA, PhD, said. “The office and retail sectors are expected to lead the commercial real estate market in 2016 with near double-digit increases in construction spending expected.”
“We expect the residential construction sector to continue its gradual recovery as we head into 2016,” NAHB Chief Economist David Crowe said. “Steady employment and economic growth, along with attractive mortgage rates and home prices will keep the sector on an upward trajectory as we go forward, however persistent headwinds including labor and lot shortages will continue to hinder a more robust recovery.”
Each economist discussed leading, present and future indicators for sector performance, including ABC’s Construction Backlog Indicator (CBI) and Construction Confidence Index (CCI), AIA’s Architecture Billings Index (ABI) and Consensus Construction Forecast and the NAHB/Wells Fargo Housing Market Index (HMI).
An archived version of today’s web conference is available here.
Related Stories
Reconstruction & Renovation | May 30, 2017
Achieving deep energy retrofits in historic and modern-era buildings [AIA course]
Success in retrofit projects requires an entirely different mindset than in new construction, writes Randolph Croxton, FAIA, LEED AP, President of Croxton Collaborative Architects.
| May 24, 2017
Accelerate Live! talk: Applying machine learning to building design, Daniel Davis, WeWork
Daniel Davis offers a glimpse into the world at WeWork, and how his team is rethinking workplace design with the help of machine learning tools.
| May 24, 2017
Accelerate Live! talk: Learning from Silicon Valley - Using SaaS to automate AEC, Sean Parham, Aditazz
Sean Parham shares how Aditazz is shaking up the traditional design and construction approaches by applying lessons from the tech world.
AEC Tech | May 11, 2017
Accelerate Live!: Social media reactions from BD+C's AEC innovation conference
BD+C's inaugural Accelerate Live! innovation conference took place May 11, in Chicago.
Multifamily Housing | May 10, 2017
Triple Treat: Developer transforms mid-rise into unique live-work lofts
Novus Residences’ revolutionary e-lofts concept offers tenants a tempting trio of options—‘live,’ ‘live-work,’ or ‘work’—all on the same floor.
Sponsored | Building Team | May 8, 2017
The builder is the building: Finding the right builder
The most important factor in making sure the where, when, what, and how go smoothly is making sure you pick the right who.
Multifamily Housing | May 3, 2017
Silicon Valley’s high-tech oasis
An award-winning rental complex takes its design cues from its historic location in Silicon Valley.
Multifamily Housing | May 2, 2017
Multifamily housing: 7 exciting, inspiring innovations [AIA Course]
This AIA CES course features seven novel approaches developers and Building Teams are taking to respond to competitive pressures and build more quickly and with more attractive offerings.
Multifamily Housing | Apr 26, 2017
Multifamily amenity trends: The latest in package delivery centers
Package delivery centers provide order and security for the mountains of parcels piling up at apartment and condominium communities.
Multifamily Housing | Apr 26, 2017
Huh? A subway car on the roof?
Chicago’s newest multifamily development features an iconic CTA car on its amenity deck.