[Washington] According to new data from Research and Markets, the construction industry in the U.S. is expected to grow by 6.5. percent to reach $1,338,125 million in 2022, and the growth momentum is expected to continue through 2026 with a 5.5 percent compound annual growth rate. The report forecasts that construction output is expected to reach $1,658,038.6 million by 2026, which is largely supported by apartment construction.

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As the construction industry has slowed due to labor shortages, material costs, and supply issues, markets are seeing apartment construction surge nationwide. The industry is approaching a 50-year high in 2022, according to RentCafe. Based on Yardi Matrix data, there will be 420,000 new apartment units delivered by year’s end.

New York City’s expected 28,000 units delivered by the end of this year are leading the nation for 2022, followed by Dallas-Fort Worth with 23,000 units. RentCafe has expectations of further growth in apartment deliveries into the next three to four years. Research and Markets says that these increases will support construction industry growth from the short- to medium-term perspective.

The apartment construction support has arrived as residential construction slows due to inflation and high interest rates. Over the last two years, the housing industry held strong as large homes were preference, and there was an increased demand for home improvements.

This increase in residential construction demand led to growth in skilled labor, according to the Bureau of Labor. In March 2022, the number of workers in the residential sector was 890,000, a jump of 6 percent compared with February 2020.

Despite challenges in certain sectors, medium- to long-term growth remains intact, the report says. Over the next four quarters, the construction industry is expected to steadily grow. Government spending on infrastructure projects will also provide growth support, the report forecasts.