Housing Market – Although residential construction has increased slightly in the past couple of years, we aren’t likely to see real growth in this sector until wages increase. Low wages translates into fewer people having the capital to buy their first homes, opting instead to rent. According to statistics, the number of first-time homebuyers have dropped from 40% (pre-recession) to 28% (current). Wage increased could result in higher interest rates, though, so wage inflation is a real fear for the Atlanta market.
Power Construction – The number of construction projects in the power sector have increased 26% over the last year, and is expected to grow even more rapidly in the future. There are currently almost 30 natural gas projects in the US alone, and most expect construction in this segment to continue this upward trend.
Institutional Construction – Although most sector of commercial development have increased over the past years, institutional construction (construction of schools, hospitals, clinic, etc.) has yet to fully rebound. Most contribute the delay in this sector to state and local governments who are still trying to balance their books from the recent recession and decide the most appropriate places to allocate their funds.Share