Even as states lift COVID-19 restrictions and people return to public spaces, a heightened focus remains on houses and home renovations. Activity may be down slightly from last year, when people used stimulus money to transform parts of their houses into offices and gyms. Still, residential HVAC contractors expect another strong summer. Mortgage rates are a little higher than a year ago but extremely low by historic standards. That’s driving construction for those in the new-home segment.
It’s a different story for commercial HVAC contractors. Projects that were delayed last year were completed earlier this year. There are signs of a recovering market. The Architecture Billing Index has been positive since February, indicating more work in coming months. Right now, though, private nonresidential construction spending declined 7.7% year-to-date through April, reports the Associated General Contractors of America. The largest category for public construction spending, education, also declined.