Dive Brief:
-
The American Institute of Architects last week predicted a spike in commercial construction spending during 2015 and 2016.
-
Nonresidential spending will increase 7.7% in 2015 and 8.2% in 2016, according to the Institute’s biannual Consensus Construction Forecast.
-
All sectors of the industry will see increased spending over two years, although demand for hotels and office buildings will lead the charge. Institutional building—particularly of hospitals and schools—will also grow substantially, the report said.
Dive Insight:
The forecast marks the first time since the recession that the AIA has predicted growth in every major building category. Economists there pointed to job growth, higher wages and increased consumer confidence, which have led to greater demand for hotel rooms, offices and other space.
Religious institutions represent the lowest projected increase in construction spending, at 1.2% for 2015, and hotels claim the highest projected increase, at 15.3%. Although residential construction, which typically tops the list, wasn't included as one of the top categories, analysts still predict slow growth for the sector.
