JLL has released its 2023 U.S. and Canada Construction Outlook, which explores key indicators for measuring the health of the construction industry and its near-term outlook.
Key trends in U.S. construction include:
- Market participants’ willingness to wait out interest rate fluctuations is slowing down starts but demand remains elevated.
- JLL expects construction activity to contract as the current pipeline delivers, stabilizing around pre-pandemic levels by late 2024.
- As major investments in the nation’s-built environment remain a pressing need and activity is elevated, demand for materials and labor will remain strong during this lull in starts.
- Billings are expected to surge once economic recovery releases pent-up demand.
- Labor remains an issue despite high demand and hiring activity.
Most large and mid-sized metro areas saw a net increase in construction activity in 2022, with 74% of metros experiencing growth in one or more building construction sectors. When comparing active construction in 2020 vs. 2022, Denver experienced a 16% increase.
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