Dodge Data & Analytics, New York, has released its 2021 Dodge Construction Outlook, which predicts construction starts will increase 4% in 2021 to $771 billion.
“Uncertainty surrounding the next wave of COVID-19 infections in the fall and winter and delayed fiscal stimulus will lead to a slow and jagged recovery in 2021,” said Richard Branch, chief economist for Dodge Data & Analytics. “Business and consumer confidence will improve over the year as further stimulus comes in early 2021 and a vaccine is approved and becomes more widely distributed, but construction markets have been deeply scarred and will take considerable time to fully recover. The dollar value of starts for residential buildings will increase 5% in 2021, nonresidential buildings will gain 3%, and nonbuilding construction will improve 7%. Only the residential sector, however, will exceed its 2019 level of starts thanks to historically low mortgage rates that boost single family housing.”
Expectations released in the 2021 Dodge Construction Outlook include:
- Single-family housing rising 7% in dollar terms and 6% in the number of units
- Multifamily housing decreasing 1% in dollars and 2% in units
- Commercial buildings increasing 5%
- Institutional buildings increasing 1%
- Manufacturing plant construction holding steady
- Public works construction holding steady
- Electric utility construction increasing 35%
View more information about the 2021 Dodge Construction Outlook.
