Non-Residential Construction Spending To Stay Strong January 04, 2007

Housing affordability is now improving quickly, due to falling home prices and rising incomes. Improved affordability will cushion the housing downturn, but not reverse it. Non-residential construction spending is now 18% higher than a year ago. While this gain will slow, it will stay in the double-digit range. The pipeline of new projects is full. Year-to-date starts are up 15% for commercial buildings and 21% for institutional. It is well to remember, however, that every boom seeds it own demise.

Source: Reed Construction Data

[ back]