Sebastian Obando

Despite the sustained cost moderation, some sticker shock could return in 2024, ABC Chief Economist Anirban Basu said.

Recent amendments that limit the amount of retainage an owner can hold could lead to an accounting nightmare for construction firms, a real estate attorney said.

Builder confidence in securing new work also jumped, fueled by the expectation of rate cuts.

CBRE said that momentum may falter in three major cities after a rush of investment in the space this year.

Despite a decline last year, planning for commercial projects has begun to stabilize, according to Dodge Construction Network.

The city of Mesa has experienced a surge in data construction due in part to a lack of natural disasters, low utility costs and business-friendly environment.

Some types of construction are starting the new year with a bang, while others will continue to wither, experts say.

The Chicago-based construction firm expects to finish work on the 1,800-acre complex in 2026.

Economist Richard Branch anticipates weak starts until mid-2024, despite potential Federal Reserve rate cuts.

Despite lower materials prices, the construction landscape remains complicated due to high interest rates and long lead times, according to AGC Chief Economist Ken Simonson.