Report: Construction starts to increase further

By |  October 30, 2012

McGraw-Hill Construction is predicting total U.S. construction starts for 2013 to rise 6 percent to $483.7 billion, a mark that’s slightly higher than the 5 percent increase to $458 billion estimated for this year.

McGraw-Hill Construction made the prediction in its 2013 Dodge Construction Outlook.

“This still leaves the volume of total construction starts 32 percent below the 2005 peak on a current dollar basis, and down about 50 percent when viewed on a constant dollar basis,” says Robert Murray, McGraw-Hill Construction’s vice president of economic affairs. “The modest gains experienced during the past two years have in effect produced an extended bottom for construction starts, in which the process of recovery is being stretched out.”

Other developments noted in McGraw-Hill Construction’s outlook are that single-family housing will grow 24 percent in dollars, corresponding to a 21 percent increase in units to 615,000; multifamily housing will rise 16 percent in dollars and 14 percent in units, marking healthy percentage gains yet slower growth than what took place during 2011 and 2012; and commercial building will increase 12 percent, a slightly faster pace than the 5 percent gain estimated for 2012.

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