According to forecasts from McGraw Hill Construction, an 8% increase in total construction starts in 2011 is foreseen. Much of that increase is based on the growth in the single-family housing market. Other caveats include growth in employment, banks loosening their lending practices and governments containing budget overspending. The forecast was announced at the McGraw Hill Construction 2011 Construction Outlook conference in Washington DC on October 29, 2010.
The forecast for non-residential is for a 16% gain in starts, to $44.9 billion. This compares to a 17% decline seen in 2010. Office, hotel, warehouse and store activity are expected to see growth. Institutional building, including healthcare, education and public building, is forecast to remain flat in 2011.
Robert Murray, McGraw Hill Construction’s Vice President of Economic Affairs, stated “While the stimulus did have an impact on the construction market, many of those gains were offset by cuts to transportation projects made by revenue-strapped state and local governments.”