According to the 2016 Dodge Construction Outlook, total U.S. construction starts for 2016 will rise 6 percent to $712 billion, following a 9 percent gain in 2014 and an estimated 13 percent gain in 2015. 

In 2016, residential building starts are forecasted to rise 16 percent due to improving access to home mortgage loans and continuing employment growth. Multifamily construction should remain strong as low vacancies, rising rents and millennials’ demand for apartments encourage more development. 

Nonresidential building starts are forecasted to rise 9 percent. The non-building sector should retreat 14 percent following strong gains in 2015 that resulted from the completion of liquefied natural gas terminals in the Gulf Coast. 

In dollars per sector, commercial building will increase 11 percent, up from a 4 percent gain in 2015. Institutional building will advance 9 percent after a 6 percent rise in 2015. Manufacturing plant construction will recede an additional 1 percent, following a steep 28 percent plunge in 2015. Public works construction will remain flat as a new multiyear federal transportation bill being considered by Congress won’t result in projects until late 2016 and 2017. Electric utility and gas plant construction will fall 43 percent after a sharp 159 percent jump in 2015.