Before the dawning of 2017, there were numerous assumptions and predictions as to how the economic state would unfold. Aside from that, there was the highly anticipated Presidential Election where fortunately for the president-elect he or she would steer an already strong economy.
Nonetheless, regarding the California Construction Forecast for 2017, Dodge Data & Analytics economists have several predictions as to this unfolding. The forecast states a modest increase by a considerable 5 % following a significant anemic growth the previous year (2016) inspired by a series of continued solid growth over the years.
The forecast is outlined on Industry segments with the single family housing and commercial buildings set to witness a significant growth while multifamily is expected to maintain its considerably flat trajectory, according to a local California bond company.
Single Family Housing
Among the industry segments expected to experience a significant increase in growth is the single-family housing. The figures are expected to take a vertical curve with a 12 % rise for 2017 which is equivalent to an increase of 9 % about units. The home mortgage access is continually improving, and part of the caution and hesitance formerly exhibited by prospect homebuyers is expected to gradually decrease courtesy of continued growth in employment and subsequent low rates of a mortgage.
Millenial-generation older members are currently shifting towards the age bracket of 30-35 years- a factor that should continually skyrocket single family housing demand.
The 2017 forecast expects a flat trajectory when it comes to the Multifamily housing with a down of 2 % about units. The greatest year for this industry is probably back in 2015 which was inspired by a significant amount of activity which spread from New York and trickled down to California, but this seems to be slowly growing calm. Contractor Bonding rates have remained low with should help to stimulate growth. The growth of this sector even in other metropolitan regions coupled with healthy market particulars is set to maintain its curve at gradual.
Commercial buildings- a segment of the construction industry is the sector that has been experiencing momentous growth over the years and with 12 % gain estimation back in 2016, 2017 is expected to have the same momentum although with an increase of 6 %. The most improved in recent years from significantly low gains is Office construction, and with the establishment of some signature office room towers coupled with significant development efforts at the downtown market level, the increase is justifiable.
Store construction is also expected to exhibit some improvement leaps coming off a dreadfully subdued 2016 together with a further growth for warehouses. Nonetheless, for Hotel construction which has been on a steady curve, its solid 2016 numbers are expected to retreat.
On the Institutional building, 2017 is a year where the growth is expected to shoot up to double figures (10 %). This is characteristic of a comeback following paused growth both in 2016 and 2015. The category of educational facilities is set to have a boost with the continued increase in construction of standard K-12 school coupled by the recent passing of bond measures for school construction. The amusement segment (sports arenas, conventional centers and casinos, etc.) is also expected to add to the growth not to mention transportation terminals.
With steep declines for both years 2015 and 2015, 2017 is set to see a wonderful 6 % increase overall and an indication of good recovery.