A 7% gain in single-family homes in 2018 will be coupled by a 11% fall in the number of multifamily units according a new forecast
A 7% gain in single-family homes in 2018 will be coupled by a 11% fall in the number of multifamily units according a new forecast.
Continued improvement in the labor market and economy is boosting optimism among potential homebuyers and that will translate into a larger number of millennials in their 30s choosing single-family homes.
Dodge Data & Analytics says that rebuilding in Texas and Florida following the hurricanes will also increase home building.
The pullback in multifamily construction reflects changing buyers’ behavior but also more cautious bank lending for these projects.
For the commercial sector, Dodge is expecting a 2% rise, down from 3% in 2017 and a product of the 21% rise seen in 2016. Office construction is likely to remain strong due to demand along with warehouses but retail will remain weak.
"For 2018, there are several positive factors which suggest that the construction expansion has further room to proceed," stated Robert Murray, chief economist for Dodge Data & Analytics. "The U.S. economy next year is anticipated to see moderate job growth. Long term interest rates may see some upward movement but not substantially. While market fundamentals for commercial real estate won't be quite as strong as this year, funding support for construction will continue to come from state and local bond measures.”
Tax reforms and infrastructure projects could impact overall construction in 2018 depending on how Congress proceeds.
Continued improvement in the labor market and economy is boosting optimism among potential homebuyers and that will translate into a larger number of millennials in their 30s choosing single-family homes.
Dodge Data & Analytics says that rebuilding in Texas and Florida following the hurricanes will also increase home building.
The pullback in multifamily construction reflects changing buyers’ behavior but also more cautious bank lending for these projects.
For the commercial sector, Dodge is expecting a 2% rise, down from 3% in 2017 and a product of the 21% rise seen in 2016. Office construction is likely to remain strong due to demand along with warehouses but retail will remain weak.
"For 2018, there are several positive factors which suggest that the construction expansion has further room to proceed," stated Robert Murray, chief economist for Dodge Data & Analytics. "The U.S. economy next year is anticipated to see moderate job growth. Long term interest rates may see some upward movement but not substantially. While market fundamentals for commercial real estate won't be quite as strong as this year, funding support for construction will continue to come from state and local bond measures.”
Tax reforms and infrastructure projects could impact overall construction in 2018 depending on how Congress proceeds.
