Report: Construction starts to increase 5 percent in 2017

By |  October 20, 2016

Total U.S. construction starts for 2017 will advance 5 percent to $713 billion, says Dodge Data & Analytics in its 2017 Dodge Construction Outlook.

The 5 percent increase will follow an 11 percent gain in 2015 and a 1 percent gain in 2016, the firm reports.

Dodge-Data-Analytics-LogoAccording to Dodge Data & Analytics, a number of factors will contribute to the 5 percent gain in 2017, based on the current pattern of construction. Single-family housing will rise 12 percent in dollars, corresponding to a 9 percent increase in units to 795,000, while multifamily housing will be flat in dollars and down 2 percent in units to 435,000.

In addition, commercial building will increase 6 percent and institutional building will rise 10 percent, while manufacturing plant construction will increase 6 percent; public works construction will improve 6 percent; and electric utilities and gas plants will fall 29 percent.

“On balance, there are a number of positive factors which suggest the construction expansion has room to proceed,” says Robert Murray, chief economist for Dodge Data & Analytics. “The U.S. economy in 2017 is anticipated to see moderate job growth; market fundamentals for commercial real estate should remain generally healthy; and more funding support is coming from state and local bond measures. Although the global economy in 2017 will remain sluggish, energy prices appear to have stabilized, interest rate hikes will be gradual and few, and a new U.S. president will have been elected. For 2017, total construction starts are forecast to rise 5 percent to $713 billion. Gains of 8 percent are expected for both residential building and nonresidential building, while nonbuilding construction slides a further 3 percent.”

A copy of the report can be purchased here.

Dodge Data & Analytics is a technology-driven construction project data, analytics and insights provider. It provides market intelligence that helps construction professionals grow their businesses.

Allison Barwacz

About the Author:

Allison Barwacz is the digital media manager for North Coast Media (NCM). She completed her undergraduate degree at Ohio University where she received a Bachelor of Science in magazine journalism from the E.W. Scripps School of Journalism. She works across a number of digital platforms, which include creating e-newsletters, writing articles and posting across social media sites. She also creates content for NCM's Portable Plants magazine, GPS World magazine and Geospatial Solutions. Her understanding of the ever-changing digital media world allows her to quickly grasp what a target audience desires and create content that is appealing and relevant for any client across any platform.

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