“We do not see any big, near-term changes,” Anderson says.
PHOENIX—Construction spending nationwide is expected to increase approximately 6% for this year, and a further 5% in 2017, Rider Levett Bucknall said Thursday afternoon. After a 2015 in which spending grew 20% in a number of sectors, gains may begin to slow in view of the recent consensus forecast from the Urban Land Institute and PricewaterhouseCoopers suggesting that we're in the latter stages of a real estate cycle, according to RLB's Third Quarter 2016 USA Construction Cost Report.
Citing Commerce Department figures, RLB says construction put-in-place during June 2016 was estimated at a seasonally adjusted annual rate of $1,133.5 billion, which is 0.6% below the revised May estimate of $1,140.9 billion and 0.3% higher on a year-over-year basis. The value of construction for the first six months of this year was $539.8 billion, 6.2% above the same period in '15.
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Paul Bubny
Paul Bubny is managing editor of Real Estate Forum and GlobeSt.com. He has been reporting on business since 1988 and on commercial real estate since 2007. He is based at ALM Real Estate Media Group's offices in New York City.
