Recovery Turns From Tentative to Solid

The construction recovery in 2014 had two major players: A non-residential building market that outperformed expectations and a homebuilding market that fell below expectations. The combined effect will be an estimated 5% increase in the dollar value of construction starts this year, according to McGraw Hill Construction's Dodge Data & Analytics. A year ago, Dodge expected the total construction market to grow 9% in 2014. Dodge predicts that the recovery will regain momentum in 2015, when construction starts are expected to increase 9%. Dodge announced its 2015 forecast during the Outlook Executive Conference in Washington, DC, on November 6. FMI Corp, Raleigh, NC, forecasts that total construction put-in-place will increase 7% next year, after adjusting for inflation. The National Association of Home Builders, Washington, DC, is a bit more optimistic. It forecasts that single-family housing starts will spring back 28% next year, after a disappointing 3% gain in 2014.