US Nonresidential Building Construction Expenditures to Reach $523 Billion in 2021

New structures to be built due to rising consumer and government spending

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Jul 26, 2017, 12:47 ET

CLEVELAND, July 26, 2017 /PRNewswire/ -- US nonresidential building construction expenditures are forecast to reach $523 billion in 2021, according to Nonresidential Building Construction: United States, a report recently released by Freedonia Focus Reports. Rising consumer spending will spur businesses to expand and invest in new and improved structures. Rising government revenue will stoke construction of such structures as schools and government offices. The pace of gains is expected to moderate from the faster rebound-fueled growth of the 2012-2016 period, reflecting the extent of the post-recession recovery already achieved.

Expenditures for the construction of office buildings are projected to see the fastest growth among the discrete segments to 2021. Continued economic growth and rising employment levels will reduce office vacancy rates and spur the construction of new buildings – as well as improvements of existing structures – to meet the demand for office space.

These and other key insights are featured in Nonresidential Building Construction: United States. This report forecasts US nonresidential building construction expenditures in nominal and real (inflation-adjusted) US dollars to 2021. Total nominal and real expenditures are segmented by market in terms of:

education
commercial
industrial
office
healthcare
lodging
transportation
religious
other markets such as public safety and recreation

This report includes new nonresidential building construction and improvements such as additions, alterations, and major replacements (eg, heating system). Maintenance and repairs for existing structures and service facilities are excluded. Also excluded are land acquisition costs, drilling of gas and oil wells, and digging and shoring of mines.

As defined by the US Census Bureau, expenditures represent architectural and engineering costs; labor, material, and overhead costs; interest and taxes paid during construction; and contractors' profits.

Existing nonresidential building floor space in square feet is forecast to 2021 and segmented by market and US region. Market segments span commercial, industrial, office, education, public assembly, lodging, healthcare, and other. Existing floor space is segmented by US region as follows:

South
Midwest
West
Northeast

To illustrate historical trends, total expenditures in nominal and real terms, existing floor space, and the various segments are provided in annual series from 2006 to 2016.

More information about the report is available at
https://www.freedoniafocusreports.com/Nonresidential-Building-Construction-United-States-FF60032/

About Freedonia Focus Reports
Each month, The Freedonia Group – a division of MarketResearch.com – publishes over 20 new or updated Freedonia Focus Reports, providing fresh, unbiased analysis on a wide variety of markets and industries. Published in 20-30 pages, Focus Report coverage ranges from raw materials to finished manufactured goods and related services such as freight and construction. Additional Building Products reports can be purchased at https://www.freedoniafocusreports.com or MarketResearch.com.

Analysis is intended to guide the busy reader through pertinent topics in rapid succession, including: