The American Institute of Architects’ Consensus Forecast, a twice-yearly review of industry indicators and benchmarks, anticipates an upturn in commercial spending.
The recovery in the broader economy in 2021 didn’t carry over to the nonresidential building sector, say AIA analysts. Spending on the construction of these facilities declined about 5 percent, on top of the 2 percent decline in 2020. However, the market is expected to see a healthy rebound, with spending increasing by 5.4 percent this year before accelerating to an additional 6.1 percent increase next year, according to the AIA’s Consensus Construction Forecast panel.
The construction spending downturn was widespread last year. Only retail and other commercial, industrial, and health care facilities managed to eke out spending increases. This year, only the hotel, religious, and public safety sectors are expected to continue to decline. By 2023, all the major commercial, industrial, and institutional categories are projected to see at least reasonably healthy gains.
