Last Friday, the McGraww-Hill Construction company came out with a report stating that they expect construction starts in 2011 to advance 8 percent to $445.5 billion, with single-family and multifamily starts leading the way. This is great news for the real estate industry which looks at housing starts as a significant sign on how the market will fair. This is particularly good news as it follows reports of a predicted 2 percent decline for 2010 (though those reports have been mixed, as I've blogged about before).
Specific statistics from the report include:
- single-family housing is predicted to climb 27 percent in dollars and 25 percent in number of units to 565,000
- multifamily housing is predicted to rise 24 percent in dollars and 23 percent in units
Robert A. Murray, vice president of economic affairs at McGraw-Hill Construction, gave a summary of the report to nearly 400 construction executives and professionals at a convention last week. He said, "We're turning the corner, slowly; 2011 will be the first year of renewed growth for overall construction activity, and 2010 becomes the final year of a very lengthy and unusual construction cycle."
The McGraw-Hill report predicted that commercial buildings will increase 16 percent, following a three-year decline, which is great news for that industry as well. Overall, the outlook had positive news and predictions to report. Time will tell how the construction industry will do next year but this is a welcome report, especially given how the large presence of construction is in the Phoenix economy. This could also mean more jobs locally and relief for many of the local construction companies.
Read more about "Construction starts predicted to increase 8 percent nationally in 2011: great news for Phoenix real estate," at MyPhoenixmls.com
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