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Construction Growth Expected to Taper in 2018

“The US construction industry has moved into a mature stage of expansion,” Robert Murray, Dodge Data's chief economist, said at the firm's annual executive conference Thursday. Multifamily starts are expected to decelerate next year.

By Paul Bubny | Updated on November 03, 2017

Photo of Robert A. Murray With positive economic indicators for 2018, “the construction expansion has further room to proceed,” Murray said Thursday.

CHICAGO—US construction starts are expected to increase 3% for dollar volume of $765 billion in 2018, although building sectors related to commercial real estate will decelerate, Dodge Data & Analytics said Thursday. The firm’s latest Construction Outlook report was presented at its 79th annual Outlook Executive Conference here.

While single-family residential starts are expected to grow 9% in dollar volume and 7% in units next year, multifamily will retreat 8% in dollars and 11% in units to 425,000, or half the projected number of single-family homes projected to launch construction in ’18. Dodge says multifamily’s strength appears to have peaked in 2016 and has begun to wane, given slight deterioration in market fundamentals and a more cautious tone sounded by lenders.

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