The construction market in Minneapolis has experienced a significant drop this year, falling 13.9% overall with every sector declining and double-digit drops in several sectors.
The worst this year has been in the commercial sector, which has declined 20.9%. Next year is expected to bring some improvement, with the market dropping a smaller (but still significant) 10.3%. The residential, commercial, and infrastructure sectors will lead next year’s drop with declines of 15.5%, 12.5%, and 10.4%, respectively. Despite the state of the overall market, the manufacturing and education sectors are expected to show growth. In 2022, the whole market is predicted to rebound, with overall growth of 2.7% and every sector except infrastructure showing increased construction volume.
Construction employment in Minneapolis has taken a dive this year after following a pattern of steady growth over the last several years. The drop in employment has not been quite as steep as the drop in construction volume, but with both supply and demand strongly down in the labor market for construction, it is not going to put significant upward or downward pressure on prices. This would leave escalation relatively steady, other than the upward pressure from disrupted supply chains and reduced worker productivity due to social distancing practices and regulations. In light of this, prices in Minneapolis are predicted to keep roughly even in the near term.