Multifamily Construction Expected to Continue Growth

by Kacey Larsen

RALEIGH, N.C.—FMI released its Q4-2013 Construction Outlook, which predicts 2013 to end with 7 percent growth for the construction industry as a whole. Final statistics for construction-put-in-place will be available in April 2014.

Select market predictions include:

  • Residential –forecasts show residential construction ending 2013 with 18 percent growth. Multifamily construction has been particularly strong in the past two years with growth of 48 percent in 2012 and 38 percent in 2013. High rents and low household formations mean multifamily construction is expected to continue growing.
  • Power –power construction slowed to 2 percent growth is 2013, but is expected to grow an additional 5 percent in 2014 to reach $101.4 billion.
  • Manufacturing –growth in manufacturing construction will end around 4 percent for 2013 and is anticipated to continue upward with growth predicted to reach 6 percent or more starting in 2015.
  • Lodging –lodging construction continues a solid comeback in 2013 with 18 percent growth. This sector is expected to grow another 10 percent in 2014, and improvement of existing properties will continue to be a focus for the industry.
  • Amusement and Recreation –construction for amusement and recreation in 2014 should reach $15.7 billion, with help from the new stadium for the Atlanta Braves.
  • Transportation –completed construction of transportation projects in 2013 is expected to end 12 percent above 2012 levels, with an anticipated additional growth of 6 percent in 2014.

A full copy of FMI’s Q4-2013 Construction Outlook can be found here

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