A new consensus forecast from The American Institute of Architects shows slowing demand at architecture firms in 2020 is expected to contribute to a projected 5.7% decline in construction spending for 2021, according to www.forconstructionpros.com.
The AIA Consensus Construction Forecast Panel, comprised of leading economic forecasters, expects steep declines in construction spending in 2021 for office buildings, hotels, and amusement and recreation centers. Health care and public safety are the only major sectors expected to produce gains this year.
Growth in nonresidential construction is expected for 2022, with 3% gains projected for the overall building market matched by the commercial and institutional sectors.
“The December jobs report confirmed that the economy needs additional support in order to move to a sustainable economic expansion,” said AIA Chief Economist Kermit Baker. “As pandemic concerns begin to wane and economic activity begins to pick up later in 2021, there is likely to be considerable pent-up demand for nonresidential space, leading to anticipated growth in construction spending in 2022.”