Construction Activity To Slow Following Massive Growth In 2016
Construction activity is expected to slow this year as markets lose steam after the 2016 building extravaganza.
That’s according to the Associated Builders and Contractors, which said U.S. commercial and industrial construction levels will drop this year as commodity prices rise and a further interest rate hike looms, CoStar reports. But it’s not all bad news for the property market. The economy is still expanding and should support at least a 3.5% non-residential spending expansion this year, experts predict.
It’s likely 2016 will prove to be the peak year for total CRE construction this cycle, and this year construction will begin to moderate, CoStar forecasts indicate. [CoStar]