Construction spending in June through August is up 1% this year, reaching a cyclical high, but depicts significantly less growth than in prior years. With all property type vacancies remaining low, and a large volume of projects under construction, we can expect similar spending growth leading through mid-2017.
Led by growth from a number of key indicators, the U.S. construction market flexed its muscle in the third quarter across every region and property type. However, some uncertainty is beginning to creep in, according to JLL's Q3 U.S. Construction Outlook. A combination of the labor crunch and the rise of material and labor costs could create significantly slower growth by the end of 2017.
A slowdown could force many construction companies to shrink budgets and consolidate services creating more competition for projects in the near future.
According to JLL, signs of slowing growth is causing financiers, developers and contractors to take a more cautious look at their risk.
