Private spending is back – Private construction value now accounts for ~78% of all construction put in place today compared to only 64% in 2011. In the past five years, private residential construction value have more than doubled (+117%), and non-residential also grew significantly (+71%). Public spending, on the other hand, remained stagnant (-1% since 2011)
Within private non-residential construction investments, the largest increase in construction value increase comes from lodging and offices.
- Directly revenue generating constructions (i.e., lodging, office, amusement & recreation, manufacturing, and commercial) have above average growth rates
- Infrastructure-type constructions (i.e., power, transportation, communication) have below average growth rate.
- Nobody’s building religious buildings
On another note, some food for thought on this construction recovery: