The nation’s construction industry should see modest gains next year, according to the WSJ. This could be due to a rise in single family houses, apartment buildings, and highways and bridges. The increase in these areas will offset drops in commercial and manufacturing property. New development in commercial construction will be dragged down by high unemployment and tight credit markets. 2009 was tough for construction, with the value of starts expected to plunge 25% to $419 Billion.
Next year, starts are expected to climb 115 to $466.s billion, according to McGraw-Hill. Construction starts indicate future construction spending and often correlate strongly with actual spending.
Single family housing should come in at $162.s billion, a 30% boost to 560,000 units, provided that mortgage rates remain low, the $8000.00 tax credit for first time buyers is extended and programs to ease the foreclosure crisis help homeowners, the survey states.
