According to the Census Bureau, construction spending reached its highest point since 2008 in July. Even better news is the fact that economists expect that growth to continue. Private and public construction were both on the rise that month, with an increase of over 8 percent year-over-year to a seasonally adjusted annual rate of $981.3 billion. Residential construction growth will help ease the low inventory of Maui homes and condos. The same is true of Oahu, which is basically in a housing shortage crisis.
Chief economist of Associated Builders and Contractors Anirban Basu believes the Census Bureau report is evidence that the “vigorous” recovery of nonresidential construction is also underway. He painted an inspiring description of the economy in the following statement.
“Increased job growth, booming energy production, expanding industrial production and normalizing capital markets are all contributing to nonresidential construction’s renewed momentum, and confidence among developers and other significant consumers of construction services is high, signaling ongoing recovery.”
It doesn’t get much more encouraging than that. A byproduct of this economic recovery is rising property values, so those investing in Maui real estate can feel secure about the appreciation of their property if they should be planning to sell.
Ken Simonson, the chief economist for the Associated General Contractors of America, pointed out that private nonresidential construction is expected to be strong throughout the rest of the year and beyond. He believes that residential spending will also continue to grow, but at a more moderate pace. At least it seems to be the case for now, but should pick up more as private nonresidential construction continues to rise.
Mahalo for reading this week, and if you need assistance with your Maui real estate search, you’ll find our contact information at the bottom of the page.
mauiluxuryrealestateteam.com – By Robert J. Cartwright, Principal Broker