Building Design+Construction's monthly Market Intelligence Report offers a snapshot of the health of the U.S. building construction industry, including the commercial, multifamily, institutional, and industrial building sectors. This report tracks the latest metrics related to construction spending, demand for design services, contractor backlogs, and material price trends.
Data for the Market Intelligence Report is gleaned from reputable economic sources, including the American Institute of Architects, Associated Builders and Contractors, and the U.S. Census Bureau.
Here are some of the highlights from the February 2024 report:
- Spending on vertical construction (i.e., "commercial buildings" work) is at a near all-time high, at $851.4 billion in annualized spending. However, inflation plays into this equation; building projects are more costly to plan, design, and build.
- Multifamily continues to shine, with 11.9% YOY growth to $135.9 billion in annual spending. Economists are calling for a slowdown, but not until 2025-26. Even at that, construction spending will hover at near all-time highs.
- Other hot sectors: manufacturing, education, healthcare, public safety, and religious.
- The 2024-25 forecast (from AIA) for key markets looks promising; only commercial/retail and office are expected to see a pullback in construction spending. Hotels, multifamily, education, and healthcare are all expected to see strong spending increases.
- The average U.S. contractor currently has 9.1 months worth of building construction work in the pipeline, which is slightly higher for the month and on par with the previous year.
- AIA's Architecture Billings Index has remained below 50 for the past six months, which means more firms than not are experiencing a decrease in billings.
- Construction material prices have largely stabilized. We're not seeing the volatile swings in prices and availability experienced during the pandemic.
Related Stories
Healthcare Facilities | Jul 11, 2024
New download: BD+C's 2024 Healthcare Annual Report
Welcome to Building Design+Construction’s 2024 Healthcare Annual Report. This free 66-page special report is our first-ever “state of the state” update on the $65 billion healthcare construction sector.
Contractors | Jul 9, 2024
The average U.S. contractor has 8.4 months worth of construction work in the pipeline, as of June 2024
Associated Builders and Contractors reported today that its Construction Backlog Indicator increased to 8.4 months in June, according to an ABC member survey conducted June 20 to July 3. The reading is down 0.5 months from June 2023.
Office Buildings | Jul 8, 2024
Office vacancy peak of 22% to 28% forecasted for 2026
The work from home trend will continue to put pressure on the office real estate market, with peak vacancy of between 22% and 28% in 2026, according to a forecast by Moody’s.
Healthcare Facilities | Jun 25, 2024
Register today! BD+C live webinar: Key Trends in the Healthcare Facilities Market for 2024-2025
Join the Building Design+Construction editorial team for this live webinar on key trends, innovations, and opportunities in the $65 billion U.S. healthcare buildings market. This free live webinar, hosted by BD+C editors, will take place Thursday, July 11 at Noon ET / 11 AM Central.
Apartments | Jun 25, 2024
10 hardest places to find an apartment in 2024
The challenge of finding an available rental continues to increase for Americans nation-wide. On average, there are eight prospective tenants vying for the same vacant apartment.
Contractors | Jun 12, 2024
The average U.S. contractor has 8.3 months worth of construction work in the pipeline, as of May 2024
Associated Builders and Contractors reported that its Construction Backlog Indicator fell to 8.3 months in May, according to an ABC member survey conducted May 20 to June 4. The reading is down 0.6 months from May 2023.
MFPRO+ News | Jun 11, 2024
Rents rise in multifamily housing for May 2024
Multifamily rents rose for the fourth month in a row, according to the May 2024 National Multifamily Report. Up 0.6% year-over-year, the average U.S. asking rent increased by $6 in May, up to $1,733.
Construction Costs | May 16, 2024
New download: BD+C's May 2024 Market Intelligence Report
Building Design+Construction's monthly Market Intelligence Report offers a snapshot of the health of the U.S. building construction industry, including the commercial, multifamily, institutional, and industrial building sectors. This report tracks the latest metrics related to construction spending, demand for design services, contractor backlogs, and material price trends.
Contractors | May 15, 2024
The average U.S. contractor has 8.4 months worth of construction work in the pipeline, as of April 2024
Associated Builders and Contractors reported that its Construction Backlog Indicator increased to 8.4 months in April, according to an ABC member survey conducted April 22 to May 6. The reading is down 0.5 months from April 2023, but expanded 0.2 months from the prior month.
Healthcare Facilities | May 6, 2024
Hospital construction costs for 2024
Data from Gordian breaks down the average cost per square foot for a three-story hospital across 10 U.S. cities.