Dodge Data & Analytics, New York, has released its 2020 Dodge Construction Outlook, which predicts construction starts in 2020 will decline to $776 billion.
“The recovery in construction starts that began during 2010 in the aftermath of the Great Recession is coming to an end,” says Richard Branch, chief economist for Dodge Data & Analytics. “Easing economic growth driven by mounting trade tensions and lack of skilled labor will lead to a broad-based but orderly pullback in construction starts in 2020. After increasing 3% in 2018, construction starts dipped an estimated 1% in 2019 and will fall 4% in 2020.
“Next year, however, will not be a repeat of what the construction industry endured during the Great Recession,” he continues. “Economic growth is slowing but is not anticipated to contract next year. Construction starts, therefore, will decline, but the level of activity will remain close to recent highs. By major construction sector, the dollar value of starts for residential buildings will be down 6%, while starts for both nonresidential buildings and nonbuilding construction will drop 3%.”
Expectations released in the 2020 Dodge Construction Outlook include:
- Single-family housing dropping 3% in dollar terms and 5% in the number of units
- Multifamily housing decreasing 13% in dollars and 15% in units
- Commercial buildings decreasing 6%
- Institutional buildings holding steady
- Manufacturing plant construction decreasing 2%
- Public works construction increasing 4%
- Electric utility construction dropping 27%
For more information about the 2020 Dodge Construction Outlook, click here.
