Cleveland, OH, August 14, 2019 — US construction expenditures are forecast to grow 4.3% yearly in nominal terms through 2023, according to Construction: United States, a report recently released by Freedonia Focus Reports. Contractors stand to benefit from continued gains in the number of households; consumer incomes; and business, nonprofit organization, and government investment. Construction spending as a percentage of gross domestic product (GDP) is expected to regain some of the ground lost over the 2008-2011 period. Spending in the South and West is projected to slightly outpace expenditures in the Midwest and Northeast due to faster population and GDP growth.
Residential building construction is projected to remain the largest segment. The rising number of households and growing disposable incomes will spur demand for single- and multiple-unit housing. Expenditures for nonbuilding construction are expected to rise 4.9% yearly to 2023, the fastest rate among major market segments. Contractors specializing in nonbuilding projects will benefit from continued growth in government budgets, which will allow for larger investments in infrastructure.
These and other key insights are featured in Construction: United States. This report forecasts to 2023 US construction expenditures in nominal and real (inflation-adjusted) US dollars. Total expenditures in nominal and real terms are segmented by market in terms of:
- residential building
- single-unit residential
- multiple-unit residential
- residential improvements
- commercial building
- office, trade, and lodging building
- institutional building
- industrial building
- transportation building
- other commercial buildings such as public safety and recreation
- highways, streets, and other transportation
- sewer and water
- other nonbuilding construction such as breakwater systems and dams
Total expenditures in nominal dollars are also segmented by US region as follows:
- South Atlantic
- West South Central
- East South Central
- East North Central
- West North Central
- Middle Atlantic
- New England
To illustrate historical trends, total expenditures and the various market segments are provided in annual series from 2008 to 2018.
The scope of this report represents new construction and improvements such as additions, alterations, and major replacements (e.g., heating systems). Maintenance and repairs for existing structures and service facilities are excluded. Also excluded are land acquisition costs, drilling of gas and oil wells, and digging and shoring of mines.
As defined by the US Census Bureau, expenditures represent architectural and engineering costs; labor, material, and overhead costs; interest and taxes paid during construction; and contractors’ profits.
More information about the report is available at: