Reed Construction Data announced its December Expansion Index stood at 1.48, indicating overall construction in the United States is expected to grow over the next 12 months.
“The positive signs of growth are encouraging and align with other economic data,” said Bernard Markstein, U.S. Chief Economist, Reed Construction Data. “With an Expansion Index greater than 1 in 41 states plus the District of Columbia, the expected improvement in construction appears widespread across the country.” The top five states expected to see an expanding construction market: North Dakota, Rhode Island, Montana, Virginia, Utah.
The Expansion Index is a monthly measure of expectations for the construction marketplace over the upcoming 12-18 months, based on the value of projects in the planning pipeline. A reading greater than 1 indicates construction volume is expected to expand.
In addition to an overall measure of U.S. construction, Reed uses the Expansion Index to track expected construction volume for every state and more than 360 Metropolitan Statistical Areas.
According to Markstein, multiple factors are supporting the positive signal.
“Many pieces are falling into place for a moderately faster-growing economy,” stated Markstein. “Companies are experiencing rising demand. A federal budget deal was signed into law. Residential construction continues to improve. Europe is slowly working its way out of recession. These and other positives mean the Reed Expansion Index is likely to remain well above 1 for several months–an indication that construction activity will rise throughout the year.”
The Expansion Index is a ratio of the value of projects in the planning phase over the value of the projects estimated to be still under construction in a defined geography and/or building segment. The relationship says if more in the pipeline than underway, the volume will increase in the future if that ratio is greater than 1. The data covered includes non-residential and multifamily residential construction.
To view the Expansion Index, visit www.reedconstructiondata.com/market-intelligence/expansion-index.
| 20 Fastest-growing MSAs | |
|---|---|
| MSA | EI rating |
| Duluth, MN-WI Durham, NC El Centro, CA Evansville, IN-KY Flagstaff, AZ Flint, MI Grand Forks, ND-MN Greenville, NC Laredo, TX Logan, UT-ID Missoula, MT Muskegon-Norton Shores, MI Providence-New Bedford-Fall River, RI-MA Salem, OR Waterloo-Cedar Falls, IA Clarksville, TN-KY VA Beach-Norfolk-Newport News, VA-NC Columbia, MO Baton Rouge, LA Greensboro-High Point, NC |
>10 >10 >10 >10 >10 >10 >10 >10 >10 >10 >10 >10 >10 >10 >10 9.56 7.75 7.67 6.91 6.77 |
About Reed Construction Data
Reed Construction Data is a trusted source for detailed, accurate, and up-to-date information on private and public construction projects across the United States and Canada. Reed’s data collection teams leverage strong industry relationships, innovative technology, and third-party data sources to deliver timely and accurate information on projects, companies, and contacts and daily updates for all types of general and civil construction. For more information, visit www.reedconstructiondata.com.
Related Stories
Adaptive Reuse | Sep 12, 2024
White paper on office-to-residential conversions released by IAPMO
IAPMO has published a new white paper titled “Adaptive Reuse: Converting Offices to Multi-Residential Family,” a comprehensive analysis of addressing housing shortages through the conversion of office spaces into residential units.
Mixed-Use | Sep 10, 2024
Centennial Yards, a $5 billion mixed-use development in downtown Atlanta, tops out its first residential tower
Centennial Yards Company has topped out The Mitchell, the first residential tower of Centennial Yards, a $5 billion mixed-use development in downtown Atlanta. Construction of the apartment building is expected to be complete by the middle of next year, with first move-ins slated for summer 2025.
Healthcare Facilities | Sep 9, 2024
Exploring the cutting edge of neuroscience facility design
BWBR Communications Specialist Amanda Fisher shares the unique considerations and challenges of designing neuroscience facilities.
Office Buildings | Sep 6, 2024
Fact sheet outlines benefits, challenges of thermal energy storage for commercial buildings
A U.S. Dept. of Energy document discusses the benefits and challenges of thermal energy storage for commercial buildings. The document explains how the various types of thermal energy storage technologies work, where their installation is most beneficial, and some practical considerations around installations.
Office Buildings | Sep 5, 2024
Office space downsizing trend appears to be past peak
The office downsizing trend may be past its peak, according to a CBRE survey of 225 companies with offices in the U.S., Canada, and Latin America. Just 37% of companies plan to shrink their office space this year compared to 57% last year, the survey found.
University Buildings | Sep 4, 2024
UC San Diego’s new Multidisciplinary Life Sciences Building will support research and teaching in both health and biological sciences
The University of California San Diego has approved plans for a new Multidisciplinary Life Sciences Building, with construction starting this fall. The 200,000-sf, six-level facility will be the first building on the UC San Diego campus to bridge health science research with biological science research and teaching.
Codes and Standards | Sep 3, 2024
Atlanta aims to crack down on blighted properties with new tax
A new Atlanta law is intended to crack down on absentee landlords including commercial property owners and clean up neglected properties. The “Blight Tax” allows city officials to put levies on blighted property owners up to 25 times higher than current millage rates.
Resiliency | Sep 3, 2024
Phius introduces retrofit standard for more resilient buildings
Phius recently released, REVIVE 2024, a retrofit standard for more resilient buildings. The standard focuses on resilience against grid outages by ensuring structures remain habitable for at least a week during extreme weather events.
Construction Costs | Sep 2, 2024
Construction material decreases level out, but some increases are expected to continue for the balance Q3 2024
The Q3 2024 Quarterly Construction Insights Report from Gordian examines the numerous variables that influence material pricing, including geography, global events and commodity volatility. Gordian and subject matter experts examine fluctuations in costs, their likely causes, and offer predictions about where pricing is likely to go from here. Here is a sampling of the report’s contents.
Adaptive Reuse | Aug 29, 2024
More than 1.2 billion sf of office space have strong potential for residential conversion
More than 1.2 billion sf of U.S. office space—14.8% of the nation’s total—have strong potential for conversion to residential use, according to real estate software and services firm Yardi. Yardi’s new Conversion Feasibility Index scores office buildings on their suitability for multifamily conversion.
