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Subtle growth in 2024 forecast points to a brighter 2025
ConstructConnect, a leading provider of software solutions for the preconstruction industry, announced that total US construction is forecast to grow 0.8% in 2024 and then 7.7% in 2025 in its Autumn 2024 Construction Starts Forecast.
Select highlights from the US starts forecast:- While we forecast a decline of 8.3% in nonresidential building this year, it should continue to be noted that nonresidential building starts have been near record highs since the explosive growth in 2022.
- Levels of nonresidential building remain high, especially in important subsectors such as manufacturing.
- Growth in 2024 is entirely driven by explosive civil engineering starts, as residential construction is expected to stagnate this year.
- The rebound in 2025 will be due largely to a return to growth in residential and commercial construction starts.
In the Canadian forecast:
- Canadian construction starts are forecast to expand by 14.5% in 2024.
- Residential and nonresidential construction are expected to move in opposite directions, with residential starts declining and nonresidential growing.
- Civil engineering will increase with power and other miscellaneous projects, pushing growth up in 2024.
- More of the growth expected in 2025 has been brought forward into 2024 to reflect the large value of construction projects that have already broken ground.
Michael Guckes, Chief Economist at ConstructConnect, said that "with divergence in building categories and geography, construction industry professionals should consider looking beyond the overall forecast and uncover the details." Guckes explained that project selection by building type and geographic location remains an important strategic choice for construction industry professionals.
The quarterly Construction Starts Forecast helps construction professionals anticipate conditions over the next 1-to-5 years to prepare for what is ahead. Produced in partnership with Oxford Economics, forecasts combine actual construction starts through the most recent quarter-end with economic analysis, historical data, and computer models.
Get the Autumn 2024 Starts Forecast
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.
About Marshall Benveniste
Marshall Benveniste is a writer and Senior Content Marketing Manager at ConstructConnect with the Economics Group. Marshall has written on various topics for the construction industry, including strategies for building product manufacturers, artificial intelligence in construction, and data-driven decision-making. Before joining ConstructConnect in 2021, Marshall spent 15 years in marketing communications for financial services and specialty construction firms. He holds a PhD in organizational management.
