New Forecast Predicts $808B in Construction Starts in 2019 – NMP Skip to main content

New Forecast Predicts $808B in Construction Starts in 2019

Phil Hall
Oct 26, 2018
Total U.S. construction starts for 2019 will be $808 billion, according to a forecast published in Dodge Data & Analytics’ 2019 Dodge Construction Outlook

Total U.S. construction starts for 2019 will be $808 billion, according to a forecast published in Dodge Data & Analytics’ 2019 Dodge Construction Outlook. Next year’s total construction starts is expected to be above the $807 billion estimated for 2018.
 
The new forecast also predicted that single-family housing will be unchanged in dollar terms next year, with a three percent decline in housing starts to 815,000. The expected decrease in homebuyer demand is attributed to higher mortgage rates, evaporating affordability options and the reduced tax advantages for homeownership as the result of the 2017 Tax Cut and Jobs Act.
 
On the multifamily housing front, the forecast is pointing to a six percent decline in dollars and an eight percent drop the number of new units to 465,000. Commercial building is expected to retreat by three percent after posting two percent gains in 2017 and 2018.
 
“An important question going into 2019 is whether deceleration is followed by a period of high level stability or a period of decline,” said Robert A. Murray, Chief Economist for Dodge Data & Analytics. “For 2019, it’s expected that growth for the U.S. economy won’t be quite as strong as what’s taking place in 2018, as the benefits of tax cuts begin to wane. Short-term interest rates will rise, as the Federal Reserve continues to move monetary policy towards a more neutral stance. Long-term interest rates will also rise, reflecting higher inflationary expectations by the financial markets. At the same time, any erosion in market fundamentals for commercial real estate will stay modest.”

 
Published
Oct 26, 2018
Equifax Telling Lenders Of Potential Errors In Credit Scores

About 12% of customers may have been affected, according to a source.

Industry News
May 27, 2022
Lakeview Loan Servicing Faces Multiple Lawsuits Over Data Breach

At least a dozen civil lawsuits have been filed against the company, all seeking class-action status.

Industry News
May 26, 2022
Homepoint Rolls Out Jumbo ARM Loans

Homepoint's Jumbo ARM is a strategic addition to the company’s expanding jumbo portfolio.

Industry News
May 25, 2022
Planet Home Lending Expands in Oregon

New team in Portland focuses on construction lending in the Northwest.

Career
May 24, 2022
PennyMac Cutting 207 Jobs

A wide variety of positions are affected.

Industry News
May 24, 2022
Loan Officer Charged With Bank Fraud, Identity Theft

If convicted, she faces up to 30 years in federal prison on each bank fraud count and a mandatory consecutive 2 years’ imprisonment.

Industry News
May 24, 2022