NEW YORK - The major findings of a new real estate forecast predict a drop in new construction, but a growth in commercial real estate.
NEW YORK - The major findings of a new real estate forecast predict a drop in new construction, but a growth in commercial real estate. The findings include:
* New construction is expected to drop 6% to $641.4 billion.
* Single family housing expected to continue to decline, with renewed
expansion not expected until 2008 at the earliest.
* Institutional buildings are expected to gain 7% in dollar value, with
biggest gains in the public building category and continued strength in
education and healthcare facilities.
* Commercial office construction continues to rise.
The research was done by McGraw-Hill Construction, who today released its annual Construction Outlook Midyear Update, providing insight into the construction market forecast through the end of 2007.
With the recent volatility in the credit markets, the single family housing market downturn is expected to be prolonged and deepened. However, the 2007 construction market continues to be helped by relatively healthy state and local finances, as well as appropriations by the federal government. Additional monies are expected for infrastructure, with the collapse of the I-35W bridge in Minneapolis shedding light on the need for greater funding in this area.