In its third quarter construction outlook report, FMI noted that overall construction is expected to decline by 14 percent in 2009. Next year bodes better, but construction is still expected to be down by 5 percent.
When divided by different sectors, residential construction is expected to fare better in 2010 than non-residential construction, though both will see declines in 2009. Residential construction looks to be down by 25 percent this year, though the FMI report expects it will rebound in 2010. Non-residential construction is expected to fall by 13 percent in 2009 and by 16 percent next year.
"Commercial construction will follow a turnaround in the housing market by 12 to 18 months," the FMI report stated. "Commercial construction is not expected to pick up until 2012."
Recently, members of Congress have called for an extension of a tax credit which has been tied to increased confidence in the construction market. The tax credit gave first-time home buyers $8,000, though it is slated to expire on November 30 of this year.
