A research report predicts that value of U.S. construction starts will be even next year.

Construction starts for 2019 are predicting to be $808 billion, unchanged with the $807 billion estimated for 2018, according to the Dodge Construction Outlook from Dodge Data and Analytics.

“Over the past three years, the expansion for the U.S. construction industry has shown deceleration in its rate of growth, a pattern that typically takes place as an expansion matures,” stated Robert Murray, chief economist for Dodge Data & Analytics. “After advancing 11% to 14% each year from 2012 through 2015, total construction starts climbed 7% in both 2016 and 2017, and a 3% increase is estimated for 2018.

“There are, of course, mounting headwinds affecting construction, namely rising interest rates and higher material costs, but for now these have been balanced by the stronger growth for the U.S. economy, some easing of bank lending standards, still healthy market fundamentals for commercial real estate, and greater state financing for school construction and enhanced federal funding for public works,” said Murray.

Single family housing will be unchanged in dollar terms, alongside a modest 3% drop in housing starts to 815,000. There will be a slight decline in homebuyer demand, resulting from higher mortgage rates, diminished affordability, and reduced tax advantages for home ownership as the result of tax reform.

Multifamily housing will slide 6% in dollars and 8% in units to 465,000. Market fundamentals such as occupancies and rent growth had shown modest erosion prior to 2018, which then paused this year due to the stronger economy. However, that erosion in market fundamentals is expected to resume in 2019.