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SOURCE: Pacific Restoration
Experts find evidence for optimism for new construction in the new year.
San Diego, CA (PRWEB) January 22, 2013
Although construction spending slowed towards the end of year in 2012, recent reports suggest that 2013 will see an upswing in single and multi family housing construction, as well as new commercial construction.
The San Diego Union Tribune interviewed Ken Simonson, chief economist at Associated General Contractors of America and University of San Diego economist Alan Gin to get their perspectives on the demand that construction companies in San Diego can expect in the year to come. Both agree that the Census Bureau’s report of a 7.7% increase year over year in construction as well as Congress’s passage of the new tax bill indicates good news for the coming year.
With regards to commercial construction, San Diego Convention Center’s $520 million expansion project is awaiting final approval this year; it would provide a much needed kick start for commercial projects in the county and act as a catalyst for other projects in the works. More good news for San Diego construction companies is that with office vacancies dropping as employment rises, the demand is increasing for additional commercial space to accommodate workers and combat rising rent.
Construction companies can expect new demand stemming from population growth; San Diego has seen a continuous increase in population but new housing construction has not moved fast enough to keep up. Builders who specialize in both single family and multi family dwellings will see new projects created in 2013 and in years to come.
With new tax legislation in place, the uncertainty faced by business and families has subsided, giving the go ahead for projects that have been put on hold. This combined with respectable growth over the past year indicates reason for optimism by a San Diego construction contractor in 2013.
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