![]()
The AEC Lens ![]() Alex Carrick, Chief Economist at ConstructConnect
Alex Carrick is Chief Economist for ConstructConnect. He is a frequent contributor to the Daily Commercial News and the Journal of Commerce. He has delivered presentations throughout North America on the Canadian, United States and world construction outlooks. A trusted and often-quoted source for … More » EVERCAM Construction Cameras Acquires Funding from Bentley iTwin Ventures to Expand Construction Camera Digital Twin CapabilitiesMarch 1st, 2022 by Alex Carrick, Chief Economist at ConstructConnect
Article source: ConstructConnect When it comes to new residential construction in the U.S., building permit figures in units are generally accepted as a good proxy (or fill-in) for housing starts. For the 36 most populous cities in the U.S., the state of Texas claimed three of the five leaders for highest level of starts in full year 2021. Dallas-Ft Worth (76,909 units) was number one; Houston (69,053 units) was number two; and Austin (50,772 units) took fifth spot. Rounding out the top five were the huge metropolis of New York (3rd at 58,035 units) and the buzz-worthy city of Phoenix (4th at 51,923 units). The status of Phoenix as an economic ‘hot’ zone has been reaffirmed by Intel’s decision to spend $20 billion expanding its existing presence there to accommodate two new computer chipmaking plants. Next in line after the Top 5 was Atlanta with 39,296 units of residential groundbreakings.
Denver achieved the second biggest y/y gain in units, +53.5%, but that bumped its ranking to just twelfth spot for level, at 30,044 units. An Important Contest Underway, Singles vs Multiples There’s an important contest underway in America’s cities to determine the balance between single-family new residential construction and multi-family properties. The outcome is crucial to determining the preponderance of other types of construction that will be needed. For example, there’s a strong symbiotic relationship between high-rise multi-family construction, as rental or condo developments, and rapid transit work. Strong ridership feeds a demand for close-by accommodation. High density at transit hubs fuels subway and LRT passenger counts. But the flip side of the story is that one-third of the 36 most populous cities in the U.S. in 2021 had multi-family starts that were higher than single-family starts (again, both in units). Those dozen cities were Austin, Boston, Denver, Los Angeles, Miami, Minneapolis, New York, Philadelphia, San Diego, San Francisco, Seattle, and Washington DC. The reader will notice that many of those 12 cities have pronounced high-tech sectors that pull in well educated, highly motivated and mobile young workers. Furthermore, in six of the 12 cities specified above, the number of multi-unit starts was double the number of single-family starts. Boston, Miami, New York, Philadelphia, San Francisco, and Seattle were the half dozen that pulled off that feat. By the way, in San Jose, the number of singles to multiples was basically the same. Category: ConstructConnect |