Construction Pros Expect Interest Rate Cut to Spur New Work

September 23, 2024

Construction executives welcomed the Federal Reserve’s 0.5 percentage point rate cut announced on Wednesday, saying the move is the start of broader easing likely to spur new project starts.

“If we have a series of rate cuts over the next three to six months, that will likely start to show up in lower construction [loan] rates and greater availability of equity investment toward the end of this year and into next year,” said John Sullivan, chair of the U.S. real estate practice at DLA Piper, a London-based law firm. “As rates come down, borrowing costs will also come down for many projects and there will be more real estate investment and construction activity.”

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