MHC, Reed foresee partial construction upturn in 2010
"The level of construction starts in 2010 is expected to climb 11 percent," McGraw-Hill Construction forecasted on Friday [Oct. 16], "following the 25 percent decline predicted for 2009. 'The U.S. construction market in 2010 will be helped by growth for several sectors, following three straight years of decline that brought total construction activity down 39 percent from its mid-decade peak,' said Robert Murray, vice president of economic affairs…'The benefits from the stimulus act will broaden in scope, lifting not just highway construction but also environmental public works and several institutional structure types. With continued improvement expected for single-family housing, after reaching bottom earlier this year, the overall level of construction activity should see moderate expansion in 2010.'"
MHC predicted, "Single-family housing for 2010 will advance 32 percent in dollars, corresponding to a 30 percent increase in the number of units to 560,000 (McGraw-Hill Construction basis). Multifamily housing will improve 16 percent in dollars and 14 percent in units, after steep reductions in 2008 and 2009. Commercial buildings will drop 4 percent in dollars, following a steep 43 percent drop in 2009, according to an Oct. 19 Data DIGest report.