Dublin, Dec. 02, 2022 (GLOBE NEWSWIRE) -- The "United States Construction Industry Databook Series - Market Size & Forecast by Value and Volume (area and units) across 40+ Market Segments in Residential, Commercial, Industrial, Institutional, Infrastructure Construction and City Level Construction by Value , Q4 2022 Update" report has been added to ResearchAndMarkets.com's offering.
The construction industry in United States is expected to grow by 6.5% to reach USD 1,338,125 million in 2022. The growth momentum is expected to continue over the forecast period, recording a CAGR of 5.5% during 2022-2026.
This report provides market size and forecast across 40+ construction segments for a period of 10 years from 2016-2025 in United States. The construction output in the country is expected to reach USD 1,658,038.6 million by 2026.
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.
When the global pandemic hit the United States, construction firms were struggling to find skilled labor. However, the industry now has more workers than before the global pandemic outbreak, according to a report from the United States Bureau of Labor. This recovery in the construction sector has been led by the homebuilding and remodeling sectors. The number of workers in the residential sector was 890,000 in March 2022, representing a jump of 6% compared to February 2020.
Over the last two years, the housing sector remained in the bright spot. The low-interest rates and the shift in housing preferences to large homes resulted in the increased demand for new constructions and home improvements. However, with interest rates rising and inflation growing, the residential sector is expected to bear the impact from the short to medium-term perspective. Notably, the spending from the government on infrastructure projects will provide growth support for the construction industry in the United States.
A boost in apartment construction is expected to support the construction industry in the United States
Markets across the United States are seeing a surge in apartment construction. Nationwide, apartment deliveries are approaching a multi-year high in 2022.
According to a report from RentCafe, apartment deliveries in the United States are approaching a 50-year high across the country. The report, which is based on data from the Yardi Matrix algorithm, projects 420,000 apartment units to be delivered in 2022.
Notably, while apartment construction is on the rise in the United States, the construction industry remains slowed by a number of factors. Labor shortages, material costs and availability, and supply chain issues are among the factors that are hampering the growth of the construction industry.
In 2022, New York City is expected to lead the country in apartment deliveries, with an expected 28,000 units delivered by the end of this year, representing a rise of 50% over 2021. This will be followed by Dallas-Fort Worth with 23,000 units, representing a decline of 10% from last year. When it comes to apartments actually completed in H1 2022, Texas remains on top.
The publisher expects the demand for apartments to grow further over the next three to four years in the United States, thereby supporting the growth of the construction industry from the short to medium-term perspective.
The usage of cross-laminated timber is projected to grow in the United States construction industry
Despite the key benefits offered by cross-laminated timber, including eco-friendly prefabrication to conduciveness and myriad potential design applications, construction firms in the United States have been slow to adopt cross-laminated timber. However, the recent developments in the industry suggest that the usage might grow over the next few years in the United States.
The inclusion of cross-laminated timber in building codes and insurance coverage suggests that construction firms may soon begin using the cross-laminated timber more frequently in commercial and residential projects. This can lead to increased demand from the short to medium-term perspective.
Notably, in 2018, Oregon became the first state in the country to revise its building code to permit cross-laminated timber structures taller than six stories. During the same year, Washington also signed State Bill 450, stating that the building code council shall adopt rules for the use of mass timber products. In July 2022, California also updated its building codes allowing the construction of cross-laminated timber buildings up to 18 stories.
Apart from these, other states, including Idaho, Virginia, Georgia, and Utah, have adopted cross-laminated timber provisions.
As more and more states in the country permit or encourage the use of cross-laminated timber through building code modification, the publisher expects the demand to surge over the next three to four years.
The construction industry employment increases in a significant manner year on year
Employment in the United States construction industry has been on the rise. Over the last 12-month period, leading to July 2022, employment has increased significantly.
According to a report from the Bureau of Labor Statistics, industry employment increased by 311,000 jobs or 4.2% on a year-over-year basis. In July 2022, the data released by the Bureau of Labor Statistics showed that the construction industry added 32,000 jobs. In the non-residential construction sector, the net employment increased by 18,300 in July, with all three subsectors showing growth in the United States.
While the construction industry has been adding a healthy number of positions, the impact of macroeconomic factors is apparent in other data. Notably, residential construction has largely felt the pressure of rising borrowing costs, with mortgage applications in the country declining to multi-decade lows. Rising material costs and shortage of skilled labor are also affecting the growth of the commercial construction industry.
With the Federal Reserve expected to further increase the rates, the publisher expects the industry to remain under pressure from the short to medium-term perspective in the United States.
Scope
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
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