July 2, 2007—Despite the continued sagging housing industry, the nonresidential construction market has shown solid gains this year and spending is expected to increase by 7.2 percent in 2007 in inflation adjusted terms, following the growth of near six percent in 2006.
Led by heavy demand for institutional projects, the growth in 2008 is expected to be at a slower pace, closer to a three percent gain in total activity. Commercial construction is expected to edge up another 1.1 percent, with institutional activity growing by 4.5 percent, producing almost a 3 percent gain in total in activity for 2008.
These are highlights from The American Institute of Architects (AIA) semi-annual Consensus Construction Forecast, a survey of the nation’s leading construction forecasters.
For more information, see the report on the AIA Web site.
