The U.S. construction industry is expected to grow 1.8% in 2021 and 3.7% in 2022 before it registers an average annual growth rate of 3.7% throughout the remainder of the forecast period.
This information comes from the "Construction in the United States of America (USA) - Key Trends and Opportunities to 2025 (Q3 2021)" report, which has been added to ResearchAndMarkets.com's offering. Overall, the forecast assumes the residential construction sector will continue to grow over the coming quarters, despite challenges from supply chain disruptions. That includes the shortage of building materials, rising prices, lack of skilled labor and expensive land, which is adding to the building cost of new homes. They also cause project delays and boost price inflation.
Previously, the residential construction sector was the star performer of the U.S. economic recovery from the COVID-19 crisis. The industry touted double-digit growth rates since the third quarter of 2020 and made significant contributions to the rebound of the economy and construction industry. The sector largely remains supported by low mortgage rates, strong demand for bigger living spaces and a very low housing inventory in the market.
Following the Senate’s approval of the long-awaited infrastructure spending bill on August 10th, 2021, which includes long-term investments on transport, energy, utilities and climate-related initiatives, consumers have a more positive sentiment regarding the outlook for infrastructure. Although the new bill falls short of President Joe Biden's original $2.3 trillion proposal, it includes $550 billion in new federal spending to invest in various U.S. infrastructure sectors over the next five years.
