Commercial Real Estate News
Nonresidential Construction Spending in U.S. Projected to Increase Through 2023
According to the American Institute of Architects, the U.S. nonresidential building sector is expected to see a healthy rebound through next year after failing to recover with the broader economy last year.
The AIA's Consensus Construction Forecast panel -- comprising leading economic forecasters--expects spending on nonresidential building construction to increase by 5.4 percent in 2022, and accelerate to an additional 6.1 percent increase in 2023. With a five percent decline in construction spending on buildings last year, only retail and other commercial, industrial, and health care facilities managed spending increases. This year, only the hotel, religious, and public safety sectors are expected to continue to decline. By 2023, all the major commercial, industrial, and institutional categories are projected to see at least reasonably healthy gains.
"The pandemic, supply chain disruptions, growing inflation, labor shortages, and the potential passage of all or part of the Build Back Better legislation could have a dramatic impact on the construction sector this year," said AIA Chief Economist Kermit Baker, Hon. AIA, PhD. "Challenges to the economy and the construction industry notwithstanding, the outlook for the nonresidential building market looks promising for this year and next."
