The construction sector continues to show signs of recovery, with supply and demand imbalances driving new theses. While actual construction starts continue to show a significant year-over-year decrease, starts themselves are up month-over-month, and permits are at an all-time high – signifying the industry’s desire to fill the supply gap created by the pandemic as the year continues and 2022 comes into sight.
Below are key takeaways from the following reports:
Multifamily Construction Plunges – YieldPro – Link
Multifamily Housing Permits Surge in January – YieldPro – Link
- Dodge Data & Analytics (DD&A) says only three of the top 20 metropolitan areas posted gains for the year as the COVID pandemic weighed down construction starts
- DD&A indicates the value of commercial and multifamily construction starts in the top 20 metropolitan areas of the U.S. declined 23 percent in 2020, falling to $111.1 billion
- The New York metropolitan area continued to be the largest market for starts at $23.5 billion despite suffering a stark 25 percent decline from 2019. Houston suffered the biggest dip, sliding a staggering 47 percent to $4.5 billion. Phoenix, Ariz., posted a 32 percent gain, climbing to $5.3 billion.
- Only Denver, Colo. (+17 percent to $3.3 billion) and Kansas City, Mo. (+20 percent to $2.5 billion) posted increases for the year
- The Census Bureau released its monthly new residential construction report for January 2021. It shows a rise in permits and starts of multifamily housing units but a drop in unit completions.
- Multifamily Housing Construction Permits Rise Sharply:
- Multifamily Housing Construction Starts Rise:
- Multifamily Housing Completions Down: