Home >> Daily Dose >> Build Up, Build Out
Print This Post Print This Post

Build Up, Build Out

New construction starts are looking up, according to a recent report by Dodge Data & Analytics. New construction value, on a seasonally adjusted rate, has grown 6 percent compared to June, and now sits at $728.1 billion.

Dodge’s index is showing promise after an 11 percent decline in the second quarter.

“July’s increase means the third quarter began on a healthy note, which should help to maintain the up-and-down pattern on a quarterly basis that’s been present for construction starts over the past year,” stated Robert A. Murray, Chief Economist for Dodge Data & Analytics. “Within that up-and-down pattern there remains a modest upward trend, as it appears that construction starts are still in the process of reaching a peak, as opposed to having already reached a peak…It’s true that residential building is now seeing generally decreased activity for multifamily housing, but the monthly declines continue to be mixed in with monthly gains, such as what took place in July.”

Residential building in particular rose by 8 percent, although single-family housing remained unchanged when compared with June. In the first quarter, residential building was up 6 percent, however in the entirety of the second quarter it only rose 4 percent.

By region, single-family construction starts were up in every region but one when compared with June’s starts. In the Northeast, starts were up 3 percent comparatively; in the South Central they were up 2 percent, and in the South Atlantic they were up a meager 1 percent. The only negative change was in the Midwest, which was down 3 percent. The West region remained unchanged from the previous month.

The report is confident that the third quarter of 2017 will continue to show promise and construction starts will continue to increase, although there are numerous other factors that are taken into account when determining the figure, including multifamily housing starts, nonbuilding construction, and public works projects.

About Author: Joey Pizzolato

Joey Pizzolato is the Online Editor of DS News and MReport. He is a graduate of Spalding University, where he holds a holds an MFA in Writing as well as DePaul University, where he received a B.A. in English. His fiction and nonfiction have been published in a variety of print and online journals and magazines. To contact Pizzolato, email [email protected].
x

Check Also

Survey: Homeownership Remains Elusive for Baby Boomer Renters

A recent look into housing affordability by NeighborWorks America has found that three in five long-term baby boomer renters feel homeownership remains unattainable.