The multi-family housing industry and new construction is forecast to grow in 2016, making it a great investment. Partnering with the right construction group will not only keep your construction costs low while achieving a beautiful architectural design, they will ensure your project is a great success.
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New Construction Starts in 2016 to Grow according to an article from Dodge Data & Analytics
“For 2016, the economic environment should support further growth for the overall level of construction starts. While short-term interest rates will be going up in 2016, given the expected rate hikes by the Federal Reserve, the increases in long-term interest rates should stay gradual. On the plus side, the U.S. economy continues to register moderate job growth, lending standards are still easing, market fundamentals for commercial real estate continue to improve, and more funding support is coming from state and local construction bond measures. Total construction starts in 2016 are forecast to advance 6% to $712 billion, with gains for residential building, up 16%; and nonresidential building, up 9%; while the nonbuilding construction sector retreats 14%. If the volatile electric power and gas plant category within nonbuilding construction is excluded, total construction starts for 2016 would be up 10%, after a corresponding 8% gain in 2015.”
The 2016 pattern by more specific sectors is the following:
• Multifamily housing will increase 7% in dollars and 5% in units to 480,000 (Dodge basis), slower than the gains in 2015 but still growth. Low vacancies, rising rents, and the demand for apartments from Millennials will encourage more development.
• Commercial building will increase 11%, up from the 4% gain estimated for 2015. Office construction will resume its leading role in the commercial building upturn, aided by more private development as well as construction activity related to technology and finance firms.
• Institutional building will advance 9%, picking up the pace after the 6% rise in 2015. The educational facilities category is seeing an increasing amount of K-12 school construction, supported by the passage of recent school construction bond measures.
• Manufacturing plant construction will recede an additional 1% in dollar terms, following the steep 28% plunge for 2015 that reflected the pullback by large petrochemical plant starts.