UCLA economists are predicting an economic rebound in 2021 after a few weak months in early 2021. Basically it will be a continued gloomy COVID winter, with a spring rebound starting off the recovery. This is good news after a turbulent 2020 for the US economy and it’s great news for the California economy as UCLA is projecting California to grow faster than the rest of the US.
The forecast expects California’s tech industry, healthcare, and construction to be the fastest growing in 2021 with retail, food, and hospitality businesses suffering a prolonged hangover from the 2020 shutdowns.
The forecast predicts construction of single-family homes to rebound quickly to 123,000 new units, a 16% increase, due to a lack of supply, pent-up demand, and low mortgage rates.
While the outlook for new home construction is bright, the UCLA 2021 forecast is warning of possible slow downs in commercial construction due to reduced demand in the short term. The forecast also warns of possible state/local government construction projects slowing due to budget constraints, however, this could be offset by Federal infrastructure projects and stimulus to prop up the economy by the Biden Administration.
For Quarterly updates on the economy, SBA lending rates, and the affect on small business sales-transactions ready our blog Is Now a Good Time to Buy or Sell a Business?
