flexiblefullpage -
billboard - default
interstitial1 - interstitial
catfish1 - bottom
Currently Reading

Despite deteriorating economic conditions, nonresidential construction spending projected to increase through 2023

Market Data

Despite deteriorating economic conditions, nonresidential construction spending projected to increase through 2023

Construction spending on buildings is projected to increase just over nine percent this year and another six percent in 2023, according to a new report from the American Institute of Architects (AIA). 


By AIA | July 21, 2022
Consensus construction spending
Courtesy Pixabay.

Construction spending on buildings is projected to increase just over nine percent this year and another six percent in 2023, according to a new report from the American Institute of Architects (AIA). 

While the outlook for the broader economy has become more uncertain, the prospects for construction spending have improved since the beginning of the year. The outlook from the AIA Consensus Construction Forecast Panel, in its mid-year update, is more optimistic than what was projected at the beginning of the year, largely due to the extremely strong gains in the manufacturing category, as well as surprising strength in retail facilities. The industrial market is expected to pace the building construction upturn this year and next, while the institutional sector is forecast to begin its recovery this year and accelerate moving into 2023. 

“The construction industry is not without its own set of challenges,” said AIA Chief Economist Kermit Baker, Hon. AIA, PhD. “Supply chain disruptions coupled with general inflation has pushed up inputs to construction by almost 15 percent over the past year. However, challenges to the economy and the construction industry notwithstanding, the outlook for the nonresidential building market appears promising for this year and next.”

Consensus Construction Forecast
Courtesy AIA.

 

Related Stories

Market Data | Nov 30, 2016

Marcum Commercial Construction Index reports industry outlook has shifted; more change expected

Overall nonresidential construction spending in September totaled $690.5 billion, down a slight 0.7 percent from a year earlier.

Industry Research | Nov 30, 2016

Multifamily millennials: Here is what millennial renters want in 2017

It’s all about technology and convenience when it comes to the things millennial renters value most in a multifamily facility.

Market Data | Nov 29, 2016

It’s not just traditional infrastructure that requires investment

A national survey finds strong support for essential community buildings.

Industry Research | Nov 28, 2016

Building America: The Merit Shop Scorecard

ABC releases state rankings on policies affecting construction industry.

Multifamily Housing | Nov 28, 2016

Axiometrics predicts apartment deliveries will peak by mid 2017

New York is projected to lead the nation next year, thanks to construction delays in 2016

Market Data | Nov 22, 2016

Construction activity will slow next year: JLL

Risk, labor, and technology are impacting what gets built.

Market Data | Nov 17, 2016

Architecture Billings Index rebounds after two down months

Decline in new design contracts suggests volatility in design activity to persist.

Market Data | Nov 11, 2016

Brand marketing: Why the B2B world needs to embrace consumers

The relevance of brand recognition has always been debatable in the B2B universe. With notable exceptions like BASF, few manufacturers or industry groups see value in generating top-of-mind awareness for their products and services with consumers.

Industry Research | Nov 8, 2016

Austin, Texas wins ‘Top City’ in the Emerging Trends in Real Estate outlook

Austin was followed on the list by Dallas/Fort Worth, Texas and Portland, Ore.

Market Data | Nov 2, 2016

Nonresidential construction spending down in September, but August data upwardly revised

The government revised the August nonresidential construction spending estimate from $686.6 billion to $696.6 billion.

boombox1 - default
boombox2 -
native1 -

More In Category

Construction Costs

New download: BD+C's May 2024 Market Intelligence Report

Building Design+Construction's monthly Market Intelligence Report offers a snapshot of the health of the U.S. building construction industry, including the commercial, multifamily, institutional, and industrial building sectors. This report tracks the latest metrics related to construction spending, demand for design services, contractor backlogs, and material price trends.




halfpage1 -

Most Popular Content

  1. 2021 Giants 400 Report
  2. Top 150 Architecture Firms for 2019
  3. 13 projects that represent the future of affordable housing
  4. Sagrada Familia completion date pushed back due to coronavirus
  5. Top 160 Architecture Firms 2021