According to American Institute of Architects, despite labor shortages and rising material costs that continue to impact the construction sector, construction spending for nonresidential buildings in the U.S. is projected to increase 4% this year and continue at that pace of growth through 2019.
The American Institute of Architects semi-annual Consensus Construction Forecast indicates the commercial construction sectors will generate much of the expected gains this year, and by 2019 the industrial and institutional sectors will dominate the projected construction growth.
"Rebuilding after the record-breaking losses from natural disasters last year, the recently enacted tax reform bill, and the prospects of an infrastructure package are expected to provide opportunities for even more robust levels of activity within the industry," said AIA Chief Economist, Kermit Baker, PhD, Hon. AIA. "The Architecture Billings Index (ABI) and other major leading indicators for the industry also point to an upturn in construction activity over the coming year."
U.S. builder confidence in the single-family 55+ housing market remained strong in the fourth quarter of 2017 with a reading of 71, up 12 points from the previous quarter. This is the highest reading since the inception of the index in 2008.
According to global real estate consultant CBRE, the enactment of comprehensive tax reform in the U.S. contributed to strong investor sentiment and a favorable commercial real estate lending environment at the end of 2017.
According to a Zillow, U.S. homebuyers paid more than the asking price in nearly one quarter (24 percent) of U.S. home sales in 2017, netting sellers an additional $7,000 each. Five years ago, 17.8 percent of final sale prices were higher than the asking price.