Single-family Housing to Lead Construction Market Growth in 2014
October 25, 2013
McGraw Hill Construction released its 2014 Dodge Construction Outlook, which predicts that total U.S. construction starts for 2014 will rise 9 percent to $555.3 billion, higher than the 5 percent increase to $508 billion estimated for 2013. Single-family housing will grow 26 percent in dollars, corresponding to a 24 percent increase in units to 785,000. The positives for single-family housing are numerous, MHC reports, with an easing pace of foreclosures, rising home prices and consistently low mortgage rates.
“We see 2014 as another year of measured expansion for the construction industry,” says Robert Murray, MHC’s vice president of economic affairs. Murray notes that the construction industry is expected to grow in 2014 due to job growth, low interest rates and an improving bank lending environment. “The 2014 picture bears some similarity to what’s taking place during 2013, with single-family housing providing much of the upward push, multifamily housing showing a slower yet still healthy rate of growth after four years of expansion, and commercial building gradually ascending from low levels,” Murray adds.
The 2014 Dodge Construction Outlook was presented at McGraw Hill Construction’s 75th annual Outlook Executive Conference in Washington, D.C. Copies of the report with additional details by building sector are available for order.