The New England region saw a 17% rise in construction this yearto $21.6 billion. The best performers in 2000 have been incomeproperties, which are up 12 %; public works, which are up 27%; and,institutional construction, which is up 28%. According to Murray,those areas will begin to deteriorate next year with a 4% declinein total construction anticipated.

"After a surge of activity in 2000, we're looking at a slightlylarger decline for New England as opposed to the rest of the UnitedStares," says Murray. Money will be less available in Massachusettsnext year, he believes, even though this area has some of thestrongest market basis in the country for office and hotel product.Financial constraints, he adds, are limiting the ability forcommercial projects to move ahead here--especially for hotels.

Murray predicts a 1.3% job growth for the next two years, whichis down from 2.3% the previous two years. Because it is soexpensive to live in the Boston area, it is less likely that therewill be enough new workers coming from outside the area to ease thesituation.