Magazine article Mortgage Banking

Nonresidential Construction Poised to Pick Up in 2005

Magazine article Mortgage Banking

Nonresidential Construction Poised to Pick Up in 2005

Article excerpt

AFTER YEARS OF TRAILING BEHIND ITS RESIDENtial counterpart, look for the varied segments of private, nonresidential construction to continue to gain strength and steal the limelight in 2005, predicted the Associated General Contractors of America (AGC), Alexandria, Virginia.

But even as the residential segment is positioned to experience a slight, short-lived decline--due to gradually rising interest rates and higher materials costs--don't expect any single aspect of private, nonresidential building to dominate. Instead, look for moderate and steady nonresidential growth nearly across the board, explained AGC Chief Economist Ken Simonson.

The value of construction put in place, both nonresidential and residential, set a record for the 14th straight month in March, as it hit a seasonally adjusted annual rate of $1.05 trillion, while construction as a whole for the first quarter of 2005 surpassed the first-quarter 2004 total by 9 percent, according to U.S. Census Bureau figures.

Simonson noted the first-quarter gains were widespread, with private residential up 13 percent over the year-ago quarter while private nonresidential was up 7 percent. …

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