WASHINGTON — July 17, 2024 — Spending on non-residential buildings is forecast to increase more than 7% this year, according to the consensus mid-year construction forecast from the American Institute of Architects. Spending will fall to just 2% in 2025, as market challenges continue to affect the pace of growth. The AIA's consensus-building forecast forecasts solid construction spending for 2024, driven by the manufacturing and institutional sectors, followed by a slowdown in 2025. While commercial construction faces challenges, the growth of manufacturing, data center and institutional sectors, in particular education, will help compensate for weaknesses in other areas. Construction spending, while still increasing, has slowed the pace of growth so far this year, and this slowdown is expected to continue until 2025. Builders' confidence has currently fallen to a reading of 43 in June 2024, but housing construction is expected to rebound in 2025. The AIA consensus building forecast panelists provide a mid-year update on spending and trends in construction. In all key sectors, manufacturing construction will see a 10% increase in 2024, while institution-building will record mid-digit gains over the next two years.
These projections are derived from the analysis of a panel made up of leading construction forecasters from across the country. Commercial facilities are expected to remain stable, while manufacturing construction will record growth of almost 14% this year, followed by a stabilization in 2025. Let's look at some indicators that show the evolution of single-family residential construction in 2025. Spending on non-residential buildings will see a modest increase of 4% in 2024, after increasing more than 20% last year, according to the latest consensus construction forecast from the American Institute of Architects. WASHINGTON — January 22, 2024 — Spending on non-residential buildings will see a modest 4% increase in 2024, after rising more than 20% last year, according to the latest consensus construction forecast from the American Institute of Architects. Taking into account the expected slowdown in construction over the next two years, the AIA points to an increase in long-term interest rates, which has led to a restriction on construction loans.
Despite the general increase in construction spending, growth has slowed and is expected to continue to slow down until 2020. Warehouse construction went from just over 6% to more than 9% of the market, while spending on data centers increased significantly and now represents more than 3% of the market. According to the Census Bureau and the Department of Housing and Development Hud, the seasonally adjusted rate of building permits in May 2024 was 1,386,000 949,000, of which were intended for the construction of single-family homes.
