Sign In
Read this to get a quarterly update on the forecast for five-year construction starts.
ConstructConnect released its Construction Starts Forecast for the second quarter, reporting an outlook of 3.3 percent US growth in 2024. This figure is a slight downward revision of last quarter’s forecast. The data includes nonresidential, residential, and civil engineering starts.
“The positive growth forecast is driven largely by the resilient economic outlook, but a delay to interest rate cuts has underpinned downward revisions to our commercial and multi-family residential subsector forecasts,” noted Alex Carrick, Chief Economist at ConstructConnect.
Following 2.3% growth in 2023, total nonresidential construction activity is anticipated to decline by 4.8% in 2024. Carrick points out that this pullback is from near-record levels of nonresidential building starts, following massive growth in 2022. For example, new construction in the manufacturing sector has risen to historic levels after 229% growth in 2022.
The civil engineering sector is expected to have another strong year in 2024, with 13.2% growth. Miscellaneous civil engineering, which includes railways, tunnels, and pipeline projects, is forecast to grow at 58%.
Get the 2024 2Q Construction Starts Forecast
Canadian construction starts are expected to fall in 2024 due to the current macroeconomic slowdown. Nonresidential building starts are projected to decline by 2.8% in 2024. The forecast follows a strong year in 2023, driven by large institutional construction starts.
Canadian infrastructure spending remains a priority, but much of the spending and growth will likely be seen in 2025 rather than this year. Power infrastructure construction, expected to grow 20.5% in 2024, is forecast for triple-digit growth in 2025.
Senior economist Michael Guckes said, “The forecast is not without risk, and project selection by category, type of structure, and region is critically important for business leaders.” Guckes points out that the persistence of inflation and the Federal Reserve’s reluctance to cut interest rates are holding back a broader growth outlook.
ConstructConnect publishes the Construction Starts Forecast quarterly. It includes a five-year forecast by type of structure and drivers influencing each building sector in the US and Canada.
Get the 2024 2Q Construction Starts Forecast
For more construction economy insights you can act on, visit our economic resources.
About ConstructConnect
Construction Starts Here™ at ConstructConnect, where our mission is to help the construction industry start every project on a solid foundation. A leading provider of software solutions for the preconstruction industry, ConstructConnect empowers commercial construction firms to streamline their workflows and maximize productivity. ConstructConnect operates as a business unit of Roper Technologies (Nasdaq: ROP), a constituent of the Nasdaq 100, S&P 500, and Fortune 1000.
ConstructConnect Economic Group media inquiries, please contact economics@constructconnect.com
