The housing market remains stagnant due to elevated mortgage rates and stricter credit requirements. In contrast, commercial and public construction sectors are thriving. All commercial segments, except for hotels, show significant growth. While there are indications of a potential slowdown ahead, current trends remain robust. Infrastructure projects continue to surge, with certain sectors experiencing remarkable growth rates of 50 to 75%. Public construction remains exceptionally strong, maintaining a staggering 20% increase with no signs of deceleration.
Material price increases have moderated to around 4 to 5%, marking a slowdown from previous escalations. However, persistent inflation over the last 5 years remains a persistent issue with no clear resolution in sight. Certain materials have seen substantial price hikes ranging from 20% to 50% over this period, contributing to ongoing inflation concerns. Oil prices, which had stabilized around $80, have recently dipped to $78, warranting careful observation for future developments.
CONCRETE BLOCK (CMU)
After increases of up to 10% over the last 5 years we now see concrete block stabilizing at the 5% level. We don’t see much of a change for the next 6 months.
READY-MIX CONCRETE
Concrete has been following a consistent pattern since late 2020. The yearly increases held steady at 8%, unlike its components, which can fluctuate widely. Recent increases have been in the 4 percent range, not as dramatic as the rest of the pack but still significant.
PRECAST CONCRETE
Precast is pretty much following Concrete (above) with average gains of 8% for the last 5 years. Now it is slowing to 2% for the most current year — not too dissimilar from its ready-mix components.
