We recently published an article on the . In this article, we will look at where Lennar Corporation (NYSE:LEN-B) ranks among the best construction stocks to buy according to analysts. The recent 50 basis point rate cut has given a significant boost to the market and put a lot of industries into focus.
The construction industry could also benefit significantly from the cuts as lower interest rates reduce borrowing costs, increase demand for real estate, encourage infrastructure investment, and boost consumer spending. This leads to more construction projects and supports overall growth in the sector. According to a Research and Markets report, the U.
S. construction industry is set to grow by 5.6% in 2024, reaching $1.
27 trillion, with a projected annual growth rate of 4.7% through 2028, reaching $1.53 trillion.
The growth is supported by government policies focused on infrastructure development and efforts to bring manufacturing back to the U.S. Despite some cost pressures, major projects such as data centers and infrastructure investments are expected to drive industry growth.
According to FMI corporation’s , U.S. construction in 2024 is expected to surpass $2 trillion for the first time, a 6% increase from 2023.
However, growth is projected to slow to around 3-5% annually over the next five years. In residential construction, a mixed trend is emerging, with single-family home construction projected to grow by 7%, while multifamily construction may decline by 25%. Non-resid.