McGraw-Hill Construction Sees 2011 Rebound

Atlanta, GA, Nov. 2, 2010 -- The construction market should begin to rebound next year, according to a forecast released by McGraw-Hill Construction, according to ENR.

Robert Murray, vice president of economic affairs, forecasts an 8% increase in total construction starts to $445.5 billion in 2011, with the single-family housing market seeing starts rising 27% to $126.7 billion.

He also predicts that multifamily housing starts will increase 24% to $23.6 billion.

However, Murray said that in order to reach those gains, employment will need to grow, banks will have to loosen lending, and state and local government will need to contain their budget difficulties.

Murray also said that next year commercial construction starts could also begin to recover, with a 16% gain in starts as office, hospitality and retail sectors all post gains.

McGraw-Hill Construction estimates that total construction starts will drop 2% to $411 billion in 2010, marking the fourth year in a row of decline.