Major metro data has come in for 2020, and construction activity was down (sometimes significantly) across the majority of the top 10 metros (Phoenix excluded). Forward-looking permits ticked up a bit, as construction appetite comes back and investors look ahead. However, the starts continue to be down, with completions making a strong turn downward. Those items reflect the long-term impacts of the March 2020 shutdown.

Below are key takeaways from the following reports:

Pandemic Has Negative Impact on Commercial and Multifamily Construction – Multifamily Executive – Link

Another Mixed Report on Multifamily Housing Construction in December– YieldPro – Link

Download the PDF version of this report here:

Pandemic Has Negative Impact on Commercial and Multifamily Construction

Multifamily Executive

• The COVID-19 pandemic hindered commercial and multifamily construction activity in 2020, according to Dodge Data & Analytics’ recent year-end report. The value of commercial and multifamily construction starts for the top 20 metros lost 23% last year, falling to $111.1 billion.
  • Nationally, commercial and multifamily starts dropped 20% year over year to $193.4 billion. Breaking it down, multifamily building starts fell 11% to $89.5 billion, and commercial building starts dropped 26% to $104 billion.
  • “The pandemic is having a significant negative impact on commercial and multifamily construction across the country,” … He added that while the construction sector will show signs of recovery this year, the full road back will be “long and difficult”
  • Some key multifamily stats from Dodge Data & Analytics for the top 10 metros include:
    • New York: a significant 27% decrease in 2020
    • Washington, D.C.: a 2% increase last year
    • Los Angeles: starts fell 2% last year
    • Dallas: starts fell 15% in 2020
    • Chicago: a significant decline, falling 54%
    • Boston: starts dropped 21% last year
    • Phoenix: This market has been a multifamily darling, seeing a 52% increase in multifamily building starts in 2020
    • Miami: starts fell 31% in 2020
    • Austin: starts increased 4% last year
    • Houston: starts decreased 48%  in 2020

Another Mixed Report on Multifamily Housing Construction in December

YieldPro

• The Census Bureau released its new residential construction report for December 2020. It is the inverse of last month’s report with a drop this month in multifamily housing construction permits and starts but a sharp rise in the number of completions of multifamily housing units.
  • Multifamily Housing Construction Permits Off Slightly:
    
  • Multifamily Housing Construction Starts Fall:
  • Multifamily Housing Completions Rebound: