A Rebound in Nonresidential Building Markets Keeps Growth Going
History buffs reviewing this years batch of industry forecasts for 2006 may experience Yogi Berras feeling of "deja vu all over again." The scenario of strong and steady public works and rebounding nonresidential building markets offsetting a downturn in a record-breaking homebuilding market is strikingly similar to last years predictions. While last years forecasts for public works and nonresidential buildings pretty much came true, the housing market once again defied predictions of its demise.
Instead of slowing, the value of new residential construction put-in-place increased 14% this year, according to estimates by the U.S. Dept. of Commerce. New housing will account for 57% of this years $1.136-trillion construction market, according to Commerce data. McGraw-Hill Construction (MHC), of which ENR is part, estimates that the value of new single-family housing starts will increase 8% this year after posting cumulative gains of 45% during the previous three years.