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Dodge Data Sees Modest Recovery Ahead for Construction
After declining 14% in 2020, total U.S. construction starts will increase 4% in 2021 to $771 billion, Dodge Data & Analytics said Tuesday. The recovery will favor both single-family and commercial building, while multifamily construction is expected to ebb by 1% in dollar value and 2% in units.
“The COVID-19 pandemic and recession has had a profound impact on the U.S. economy, leading to a deep drop-off in construction starts in the first half of 2020,” said Dodge chief economist Richard Branch. “While the recovery is underway, the road to full recovery will be long and fraught with potential potholes.”
Accordingly, Branch said the dollar value of starts for residential buildings will increase 5% in 2021, nonresidential buildings will gain 3% and nonbuilding construction will improve 7%. “Only the residential sector, however, will exceed its 2019 level of starts thanks to historically low mortgage rates that boost single-family housing.”
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- ◦Economy
- ◦Development
