"The current year is seeing a shift in the source of expansion for construction activity," says Robert A. Murray, vice president of economic affairs for McGraw-Hill Construction. "Single-family housing had been providing the upward push for much of the past five years, but now it’s beginning to lose momentum.”
Nonresidential building in 2006 picked up as stronger fundamentals such as improved occupancies and rents are outweighing any dampening arising from higher material costs. In addition, the public works sector is being boosted by enhanced transportation funding, and the volume of new power plant construction appears to be turning upward after a lengthy decline, according to the report.
Nonresidential building construction increased 5 percent in April. In the institutional category, health care facilities surged 46 percent; public buildings soared 52 percent; and churches increased 26 percent. Transportation terminals rose 17 percent; amusement-related projects jumped 11 percent; and school construction dropped 2 percent. In the commercial category, store construction climbed 14 percent; warehouses advanced 28 percent; and manufacturing building surged 67 percent. Office construction slipped 5 percent, and hotel construction plunged 50 percent.
Residential building construction was up slightly in April at 2 percent. Single-family housing was unchanged, and multifamily advanced 13 percent.
Total construction activity in April was 8 percent higher than the corresponding amount during 2005. Residential building construction increased 5 percent, and nonbuilding construction rose 8 percent. Nonresidential building climbed 14 percent. West rose 13 percent; South Central increased 8 percent; Northeast grew 6 percent; and Midwest and Atlantic each advanced 5 percent.
