Construction growth slows in 2017 in New Jersey
New Jersey's construction industry will see some growth in 2017, but an expert says it will be down from a high point in 2015.
Analyst Patrick O'Keefe, of Cohn/Resnick in Roseland says that like a lot of the things in New Jersey's economy, construction is cyclical.
He says as we look ahead to next year, "the approvals are becoming more difficult to achieve, and therefore the pipeline and the momentum in the pipeline will slow as 2017 proceeds."
"2017 will be an OK year. It will not be a banner year," he says.
O'Keefe says he anticipates that growth, both in the residential and non-residential sectors, will continue. But the pace will slow as the year moves forward.
"We have had a pretty good run in terms of the recovery, from the housing recession back in 2008 through 2010."
O'Keefe also says another factor weighing on housing construction is the fact that sales of existing homes are tight because people are not getting the prices they are asking for on their homes.
Also, rising interest rates will have an impact on all homebuyers.
"As those rates do move up, people will be a little bit less enthusiastic about buying because they know that their monthly payment is going to be higher than it has been in the past."
Joe Cutter is the afternoon news anchor on New Jersey 101.5