The New England region saw a 17% rise in construction this year to $21.6 billion. The best performers in 2000 have been income properties, which are up 12 %; public works, which are up 27%; and, institutional construction, which is up 28%. According to Murray, those areas will begin to deteriorate next year with a 4% decline in total construction anticipated.
"After a surge of activity in 2000, we're looking at a slightly larger decline for New England as opposed to the rest of the United Stares," says Murray. Money will be less available in Massachusetts next year, he believes, even though this area has some of the strongest market basis in the country for office and hotel product. Financial constraints, he adds, are limiting the ability for commercial projects to move ahead here--especially for hotels.
Murray predicts a 1.3% job growth for the next two years, which is down from 2.3% the previous two years. Because it is so expensive to live in the Boston area, it is less likely that there will be enough new workers coming from outside the area to ease the situation.
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