McGraw-Hill’s Vice President of Economic
Affairs Robert Murray announced that the Dodge Construction Outlook for 2014
predicts construction starts across the American economy could rise about 9% to
a total of $555 billion, led by a solid housing market and rising commercial
construction. The Dodge Outlook prediction is based on “more orderly” federal
budget deliberations in Congress, and a predicted overall U. S. economy growing
at between 2.5% and 3% in 2014.
The
construction economy has been sluggish in 2013, mostly because of 2013’s
contraction in overall U. S. economic growth to 1.6%, compared to 2.8% growth
in 2012. Construction starts in 2012 were up 10%, but fell back to only a
predicted 5% this year. Apartment construction leads all sectors with 36%
growth in 2012, 19% growth in 2013, and a projected 11% growth to a total of $53.1
billion in 2014.
Single
family home construction is expected to accelerate to $201.1 billion next year.
Commercial construction starts increased 14% in 2012, 15% in 2013 and an
expected rise of 17% to $72.7 billion in 2014. Nevertheless, it will be a long
time before the construction industry sees 2005’s peak levels of activity,
according to Murray.
