DUBLIN, Feb. 15, 2023 /PRNewswire/ — The “United States Construction Industry Databook Series – Market Size & Forecast by Value and Volume, Q1 2023 Update” report has been added to ResearchAndMarkets.com’s offering.
This report provides market size and forecast across 40+ construction segments for a period of 10 years from 2018-2027 in United States.
Construction industry in United States is expected to grow by 6.1% to reach USD 1,419,192 million in 2023.
Despite near-term challenges in certain construction sectors, medium to long term growth story in United States remains intact. The construction industry in United States is expected to grow steadily over the next four quarters. The growth momentum is expected to continue over the forecast period, recording a CAGR of 5.2% during 2023-2027. The construction output in the country is expected to reach USD 1,735,526.5 million by 2027.
Inflation has surged to a multi-year high in the United States in 2022. The higher construction costs, along with supply chain and labor availability issues, have resulted in project delays affecting the growth of the construction industry in the United States. While the construction costs and material prices are projected to experience a decline over the next few quarters, further rate hikes projected to be announced by the Federal Reserve will dampen the growth of the housing construction market.
Furthermore, as inflation and recessionary fears continues to impact the revenue growth for tech giants such as Meta, Google, and Amazon, the publisher also expects delays in hyper-scale data center construction projects in 2023. While the outlook for the United States construction industry remains subdued from the short-term perspective, growing spending from the national government towards the development of infrastructure will assist the industry in 2023.
Higher housing costs will dampen the growth of the residential construction market in the United States
2022 has been the year when housing prices and mortgage rates have surged significantly. Consequently, lesser Americans have shown interest in purchasing homes in December 2022 and the trend is projected to further continue, as the mortgage demand has declined to a 26-year low.
According to Mortgage Bankers Association, applications declined 13.2% for the week ending December 30, 2022. This represents the lowest reading recorded since 1996. The 26-year low mortgage demand reflects the impact of higher construction costs and interest rates on the United States real estate market.
Steep housing prices, coupled with surging inflation that kept the cost of living elevated, have weakened the purchasing power of consumers in the United States. Consequently, leading to a substantial pullback in new and existing home sales. Furthermore, this also had a severe impact on the construction activities of new housing units.
With mortgage rates projected to remain elevated in 2023, as the Federal Reserve is expected to announce further interest rate hikes, the publisher expects the residential construction industry to remain subdued from the short to medium-term perspective.
The macroeconomic environment is disrupting data center construction activities in the United States
Amid the growing digitalization, the demand for data centers has been at an all-time high in the United States. Many of the leading tech giants, including Meta, Google, and Amazon have announced various hyper-scale data construction projects over the last few years. However, the macroeconomic environment is disrupting data center construction activities, thereby, having a growing impact on the commercial construction market.
In December 2022, Google announced that the firm is pausing construction activities of its US$600 million data center project in Minnesota. Meta, in December 2022, also announced that it is pausing the construction activities of its new data center in Idaho, wherein construction began in September 2022.
These announcements from two of the leading tech firms in the United States are showing signs of a slowdown in hyper-scale data center construction. With economic uncertainties projected to continue in 2023, the publisher expects more firms to announce construction pauses and delays from the short-term perspective.
While tech firms are pulling out their investment in hyper-scale data center construction firms, the demand for co-location data centers is projected to remain robust over the next three to four years. Consequently, the publisher expects the investment in the development of co-location data center facilities to remain robust in 2023.
Government spending on infrastructure projects will keep assisting the construction industry in 2023
While the broader construction market in the United States is expected to remain under macroeconomic pressure, increasing spending by the government on infrastructure projects will keep assisting the industry from the short to medium-term perspective.
In January 2023, the Federal Highway Administration (FHWA), announced an investment of US$2.1 billion towards the improvement of the United States bridge infrastructure. The US$2.1 billion investment is part of the large dedicated investment announced by the national government for improving highway bridges across the country.
Part of the US$2.1 billion investment, US$144 million, will be used to improve bridges south of Chicago. On the other hand, US$400 million will be deployed for the improvement of the Golden Gate Bridge in California. The Connecticut Department of Transportation is expected to receive US$158 million to improve Gold Star Memorial Bridge, while the Kentucky Transportation Cabinet is slated to receive US$1.385 billion to restructure the existing Brent Spence Bridge.
From the short to medium-term perspective, the publisher expects the government to deploy more funding towards the improvement of highways and bridges in the United States, thereby supporting the industry growth over the next three to four years.
Scope
KPIs covered include the following
- Market size by value
- Market size by volume of construction
- Number of units
United States Economic Indicators
United States Top Cities Construction Data
United States Residential Building Construction Coverage: 10-year market size & forecast in value and volume (area and units) terms by
- Housing type (multi family, single family)
- Key cities (Tier – 1, Tier – 2, Tier – 3 segmentation)
- Price point/income level (luxury, mid-tier, affordable)
- Construction stage (new construction, re-development & maintenance)
United States Residential Green Building Construction Coverage: 10-year market size & forecast in value and volume (area and units) terms by
- Green building by Housing type (multi family, single family)
- Green building by Key cities (Tier – 1, Tier – 2, Tier – 3 segmentation)
- Green building by Price point/income level (luxury, mid-tier, affordable)
United States Commercial Building Construction Coverage: 10-year market size & forecast in value and volume (area and units) terms by
- Office (further broken down by Grade A, Grade B, and Grade C)
- Retail (further broken down by Grade A, Grade B, and Grade C)
- Hospitality (further broken down by Grade A, Grade B, and Grade C)
- Restaurant (further broken down by Grade A, Grade B, and Grade C)
- Entertainment
- Sports facility
- Construction stage (new construction, re-development & maintenance)
United States Commercial Green Building Construction Coverage: 10-year market size & forecast in value and volume (area and units) terms by
- Office green building construction
- Retail green building construction
- Hospitality green building construction
- Restaurant green building construction
- Entertainment green building construction
- Sports facility green building construction
- Other commercial green building construction
United States Industrial Green Building Construction Coverage: 10-year market size & forecast in value and volume (area and units)
United States Institutional Building Construction Coverage: 10-year market size & forecast in value and volume (area and units) terms by
- Healthcare construction
- Educational construction
- Public sector
- Construction stage (new construction, re-development & maintenance)
United States Institutional Green Building Construction Coverage: 10-year market size & forecast in value and volume (area and units) terms by
- Healthcare green building construction
- Educational green building construction
United States Infrastructure Construction Sectors: 10- year market size & forecast in value terms by
- Marine and inland water infrastructure
- Utility system construction (oil and gas infrastructure, communication infrastructure, power infrastructure, water and sewer infrastructure)
- Transportation infrastructure (highway, street and bridge construction, railway construction, airport construction, and tunnel construction)
- Construction stage (new construction, re-development & maintenance)
United States Green Infrastructure Construction: 10- year market size & forecast in value terms
For more information about this report visit https://www.researchandmarkets.com/r/q6klkf-states?w=5
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