Construction Sector Continues To Strengthen
It seems we are finally out of the woods. As the last remnants of the economic downturn fall away from individuals and families, the construction sector in Southern California is seeing continued growth. We are still in recovery mode to some extent, but the key is that we are recovering. Progress is being made each fiscal quarter, and optimistic projections made towards the end of 2013 and early 2014 proved accurate.
For example, McGraw Hill Construction’s 2014 Dodge Construction Outlook forecasted a 9 percent increase in domestic construction starts, increasing to $555.3 billion. Impressive, when compared with the 5 percent increase to $508 billion that was projected for 2013.
This increase has been bolstered in part by the growing demand for housing. Single-family homes are a particularly hot commodity right now and will continue to be, as the inventory of homes that were foreclosed upon during the Great Recession has been more or less depleted but construction on new homes has not kept the housing inventory at normal levels. Now, there is an inundation of work for builders in order to get the housing inventory back to the level experts say is healthy.
Commercial construction is also expected to pick up, as businesses are able to expand in the newly revitalized economy, which will create a greater demand for commercial real estate. Ultimately, it looks like the growth we are seeing in the construction sector in Southern California will only continue.
If this good news is giving you the confidence you needed to move forward with your next project, contact Parkwest General Contractors. Our team of experts is here to help you every step of the way. Whether you need feasibility analysis, budgeting services, general contracting, project management, or more, we are here to serve you.