Multifamily Housing Building Begins Inch Up Barely in August In accordance with Newest Dodge Knowledge & Analytics Market Evaluation Report

Multifamily Housing Construction Starts Inch Up Slightly in August According to Latest Dodge Data & Analytics Market Analysis Report

HAMILTON, NJ – Overall housing starts decreased 9% in August to a seasonally adjusted annual rate of $ 782.8 billion, according to Dodge Data & Analytics. All three sectors lost ground during the month: non-construction starts fell 2%, residential starts fell 9% and non-residential starts fell 13%.

"Construction has entered a difficult phase after the euphoria in the early stages of recovery from the pandemic," said Richard Branch, chief economist at Dodge Data & Analytics. “The Delta variant has raised concerns that the emerging economic recovery is stalling and undermining the already low demand for most types of non-residential buildings. In addition, significant increases in the price of building materials, logistical constraints and labor shortages aggravate the difficult situation. Housing starts are likely to remain uncertain over the next few months. However, the dollar value of the projects in the pipeline still suggests that the recovery in housing starts should resume at the beginning of the new year. "

Below is the full breakdown:

Construction excluding buildings lost 2% in August to a seasonally adjusted annual rate of $ 167.8 billion. Housing starts in the category of public environmental works (water-related projects) increased by 4%, while other housing starts (heavy pipelines) increased by 14%. Meanwhile, freeway and bridge start-ups were 4% lower and utility / gas facilities fell 21% after a sizeable increase in July. In the course of the year to date, total starts in non-construction up to August increased by 1%. Public environmental works increased 23% and utility / gas plant start-ups increased less than a percentage point through August. In the first eight months of the year, launches decreased in the highways / bridges (-2%) and other non-construction sectors (-19%).

In the 12 months to August 2021, total no-construction starts were 2% lower than in the 12 months to August 2020. Construction starts for environmental public works were 22% higher and highway and bridge starts increased 3% while starts from supply – and gas systems on a rolling 12-month basis by 17% and other non-construction starts by 22%.

The largest non-construction projects that broke ground in August were the $ 677 million Oak Hill Parkway Roadway in Austin, Texas, the $ 351 million expansion of the Kansas City streetcar system in Kansas City, Missouri, and the $ 300 million first phase of the Dunns Bridge Solar Project in Wheatfield Township, IN.

Non-residential housing starts decreased 13% in August to a seasonally adjusted annual rate of $ 244.9 billion. The declines were broadly based across all building types with few glimpses of light. Commercial startups decreased 10%, institutional startups decreased 15% and production starts decreased 37% after seeing a sizeable increase in July. Despite overall losses, there were increases in the retail, parking and public buildings sectors. Housing starts for non-residential buildings have been 3% higher for the past eight months. Commercial starts increased 2% and production starts increased 33%. Institutional launches, however, were 1% lower over eight months.

In the 12 months to August 2021, non-residential housing starts were 8% lower than in the 12 months to August 2020. Commercial housing starts decreased 8%, institutional housing starts decreased 4% and production starts decreased 29% August 2021.

The largest non-residential projects that broke ground in August were the $ 800 million first phase of the Facebook Eastmark Parkway data center in Mesa, AZ, the $ 400 million Facebook data center in Springfield, NE, and the $ 350 million US dollar Pratt & Whitney Project Ranger manufacturing facility in Asheville, NC.

Housing construction lost 9% to a seasonally adjusted $ 370.2 billion in August. Single-family home start-ups decreased by 12% in August, while multi-family home start-ups increased 1%. Over eight months, the start of housing was 24% higher than in the same period of the previous year. Single family starts increased by 29%, while multiple family starts rose by 13%.

In the 12 months to August 2021, total new startups in residential buildings were 21% higher than in the 12 months to August 2020. Single-family startups increased by 28%, while multi-family startups increased by 2% on a 12-month total.

The largest apartment buildings that broke ground in August were the $ 615 million Flamingo Crossing Apartments in Winter Garden, FL, the $ 1,018 West Peachtree Apartments in Atlanta, GA, and the Victoria Place Gateway Tower $ 374 million in Honolulu, HI.

At the regional level, housing starts in all five regions lost ground in August.


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