Total Construction Starts Increase in October

Total construction starts rose 8% in October to a seasonally adjusted annual rate of $1.12 trillion, according to Dodge Construction Network. In October, nonresidential building starts gained 9%, and nonbuilding starts rose 26%. Residential starts fell by 3%.

Year-to-date, total construction was 16% higher in the first ten months of 2022 compared to the same period of 2021. Nonresidential building starts rose 37% over the year, residential starts remained flat, and nonbuilding starts were up 17%.

“October’s gain in construction starts is a further sign that the construction sector continues to weather the storm of higher interest rates,” said Richard Branch, chief economist for Dodge Construction Network. “While the residential sector is feeling the pain, the nonresidential building and infrastructure sectors are hitting their stride. Some weakness is to be expected as the Federal Reserve continues its battle with inflation; however, the damage should be isolated to a few verticals and not as widespread as what the industry witnessed during the Great Recession.”

Nonbuilding construction starts rose 26% in October to a seasonally adjusted annual rate of $277.7 billion. Highway and bridge starts rose 57%, while utility/gas plants increased 19%, and environmental public works were 13% higher. This growth is tempered as miscellaneous nonbuilding starts fell 20% in the month. Through the ten months of the year, total nonbuilding starts were 17% higher than in 2021. Highway and bridge starts were 25% higher, environmental public works were 14% higher, and miscellaneous nonbuilding starts increased 17% on a year-to-date basis. Utility/gas plant starts were flat.

The largest nonbuilding projects to break ground in October were the $576 million TX DOT Interstate Highway 820 reconstruction project in Fort Worth, TX, the $548 million TX DOT Interstate Highway 35 widening project in Austin, TX, and the $364 million repaving project in Honolulu, HI.

Nonresidential building starts rose 9% in October to a seasonally adjusted annual rate of $480.5 billion. During the month, commercial starts rose 19%, led by office and hotel projects. Institutional starts rose 8% due to a surge in education projects, while manufacturing starts fell by 5%. Through the first ten months of 2022, nonresidential building starts were 37% higher than the first ten months of 2021. Commercial starts grew 23%, and institutional starts rose 21%. Manufacturing starts were 157% higher on a year-to-date basis.

The largest nonresidential building projects to break ground in October were the $3.2 billion Texas Industries chip fabrication plant (building 1) in Sherman, TX, the $2.0 billion General Motors Orion EV plant in Orion Township, MI, and the $1 billion Gevo Net-Zero 1 hydrocarbon plant in Lake Preston, SD.

Residential building starts fell 3% in October to a seasonally adjusted annual rate of $366.4 billion. Single family starts lost 3%, while multifamily starts dropped 4%. Through the first ten months of 2022, residential starts were flat when compared to the same time frame in 2021. Multifamily starts were up 26%, while single family housing slipped 10%.

The largest multifamily structures to break ground in October were the $564 million Long Island City Center II in Long Island City, NY, the $450 million Waldorf Astoria residences and hotel in Miami, FL, and the $167 million Modera McGavock mixed-use building in Nashville, TN.

The largest multifamily structures to break ground in October were the $564 million Long Island City Center II in Long Island City, NY, the $450 million Waldorf Astoria residences and hotel in Miami, FL, and the $167 million Modera McGavock mixed-use building in Nashville, TN.

This press release originally appeared online here:
https://www.construction.com/news/October-2022-Starts

Employee Led Safety Program

Arcosa Specialty Materials is 100% committed to creating real change in our safety culture.

Arcosa Specialty Materials met recently to continue its safety journey. Employees from across the company came together in Norman, OK to review its most recent safety initiative and to plan for the future.

These are all part of the ARC 100 program. ARC is short for “Advocating Real Change”. The 100% in the loco stands for 100% committed to safety. These programs are developed by front line employees and deployed company wide.

Previous programs launched recently include Arcosa Safety Briefings, a regular safety meeting where safety issues are raised and discussed. A second, Pre-Op inspections, provides a formal checklist to check equipment prior to operating it. The most recent is Observe-Share-Report, a proactive program designed to catch accidents before they occur.

Together they are the foundation for the safety journey that continues in Arcosa Specialty Materials. However, it’s more than creating safety programs. It’s changing a company’s culture to embrace a “safety first” mentality each and every day on the job. Stay tuned for more safety updates!

UPDATE: Fire and Sound Manual Released

New Fire and Sound Manual released to increase ease of access by architects.

The Fire and Sound Manual
When designing UL assemblies, it’s important to maintain a balance between acoustic isolation and fire protection. Both are essential for safety and comfort. Our designs all conform to the limits specified in the UL Design. This includes variables like insulation thickness, where and how it’s placed in the cavity, and resilient channel spacing, and much more.

Image samples:

Content excerpt from the Fire and Sound Manual:

AccuCrete® and AccuLevel® underlayments are manufactured to rigorous ASTM standards, and have been tested to meet UL 1 and 2 hour fire rated designs. All AccuCrete® and AccuLevel® UL designs incorporate ultra low compressive AccuQuiet Sound Mats.

  • Section 1207.1 of the 2018 I. B. C. scope applies to common interior walls, partitions and floor/ceiling assemblies between adjacent dwelling units or between dwelling units and public areas.
  • Section 1201.2 of the 2018 I. B. C. scope applies to airborne sound for walls, partitions and floor/ceiling assemblies must have a sound transmission class (STC) of minimum 50 when tested in accordance with ASTM E90, laboratory test. Minimum 45 if field tested.
  • Section 1207.3 of the 2018 I. B. C. scope applies to structure borne sound refers to floor/ceiling assembles between dwelling units or dwelling units and a public area must have an impact insulation class (IIC) of minimum 50 when tested in accordance with ASTM E492, laboratory test. Minimum 45 if field tested.

To download the Fire and Safety Manual – Click Here

More Apartments Needed in US

New apartment units needed to mitigate issues related to apartment demand and the shrinking supply of affordably priced housing.

The U.S. needs 4.3 million new apartment units between now and 2035 in order to mitigate issues related to apartment demand and the shrinking supply of affordably priced housing, according to research commissioned by the National Multifamily Housing Council and National Apartment Association.

This number incorporates an existing deficit of 600,000 apartment homes, which the study attributes to underbuilding associated with the 2008 economic downturn. In addition, between 2015 and 2020, the nation’s supply of affordable housing — defined as housing units with rents less than $1,000 per month — declined by 4.7 million units.

Caitlin Sugrue Walter, vice president of research for the NMHC says “The main reason for these units not existing is that we have had a reverse filtering phenomenon occur because of our supply shortage. Because there are not enough available units, it moves the asking rents up, reducing the number of affordable units.”

Currently, the U.S. has a population of 36.8 million apartment residents living in 21.3 million apartment homes. Approximately 266,000 new units need to be built each year to meet the demand for more, according to the report.

The full study estimates apartment demand from 2022 through 2035 at the national, state and top 50 metro level. Variables in this estimate include the homeownership rate — projected to increase by 3.8% — and immigration. While the immigration rate stands at a record low, a reversal of this trend could significantly raise apartment demand, according to a press release on the report.

The site also offers a calculator to estimate the economic contributions and impact of building in a given area, with variables based on building size and type.

Making progress
At the state level, Texas, Florida and California account for 40% of future demand. The report estimates that these three states together will require 1.5 million new apartments by 2023.

Walter noted that many jurisdictions in Texas are performing well toward the apartment construction estimates outlined in the report.

“[This] is good, because they comprise the bulk of the demand going forward,” Walter said. “[The] Dallas metro area has been leading for quite some time in terms of the number of projects being built.”

The report outlines a number of policy recommendations that the NMHC and NAA say will help solve the issues it presents. They include:

  • Policies at the local level that support housing construction, such as by-right housing development and reduced parking requirements.
  • The expansion of public-private partnerships.
  • The enactment of state laws that override local restrictions.
  • Federal policy in support of new construction, particularly affordable housing.
  • “There are some things that can be done at the federal level, such as creating incentives for localities to examine their local policies,” Walter added. “Regulations are a huge driver of construction costs, which makes it difficult to build at lower, more affordable price points.”


This article appeared on the website “Multifamily Dive” and can be read in its entirety here: https://www.multifamilydive.com/news/to-meet-demand-us-needs-43m-more-apartments-by-2035/628358/

PROJECT PROFILE – Twin Hills Country Club, Oklahoma City, OK

This renovation of an iconic country club put AccuLevel® G-40 to the test.

PROJECT OVERVIEW
Twin Hills Country Club had a real problem. Fortunately, AccuLevel® G-40 was the perfect solution. The golf course in Oklahoma City, OK was in the middle of a major renovation and addition to their iconic clubhouse.

PROJECT DETAILS
The history of Twin Hills dates back to 1920 and has hosted several prestigious tournaments over the years including the PGA Championship, with players including Johnny Revolta, Arnold Palmer, and Gene Sarazen.

After removing the existing floor, they facing a huge challenge with the subfloor. The previous design used cinder block slabs, a common practice 80 years ago, but it left a big problem. How do you get a level floor when that subfloor looks like a gravel road. And just capping it with concrete was not a solution due to needing to remove the supports. 

SOLUTION
Bill Ritchie and John Lowry of Gypsum Floors of AR/OK, Inc. were called to see if they could help. After a review of the structure, they recommended AccuLevel G-40. “I’ve poured it as thin as half an inch to as much as 2 inches” said Ritchie. “We have used it for several jobs and we always get excellent results.”

With the seasoned crew from Gypsum Floors of AR/OK onsite, the project took less than a day to complete. Working around the obvious challenges of the sublfloor, the end result was a remodel and the new addition now have a smooth flat surface that is as hard as a rock.

“The client was very happy” Ritchie said, “they got a floor better than what they hoped for.”


To view the case study – click here

Plenty of reason for optimism, industry stakeholders say

Aggregate demand has not been a problem of late for the industry, and expectations are high for healthy demand in 2022.

Optimistic.

That’s the word aggregate industry stakeholders use to describe their outlooks for 2022. But while the year promises no shortage of projects, the industry finds itself playing a supply-and-demand game: keeping up with the increased aggregate demand while navigating shortages and delays in the supply chain.

Boosted demand

Producers, equipment manufacturers and dealers tend to agree demand is up across the board. This is due, in part, to the Infrastructure Investment & Jobs Act (IIJA), which passed with bipartisan support in November.

Karen Hubacz, president and CEO of Massachusetts-based Bond Construction Corp., says the infrastructure bill’s components – namely industry exemptions, the ROCKS Act and enhanced permit streamlining – provide producers a much-needed confidence boost.

“It’s vitally important,” Hubacz says. “It’s really like an insurance policy for us in that we feel much more confident to put money into ourselves, specifically to maybe do plant improvements – things that cost a lot of money – because we know we’re going to invest this money in ourselves. But it’ll pay for itself sooner than later based on what we anticipate happening.”

IIJA’s passage was an added 2022 bonus for Unified Screening & Crushing, but the company was already planning for increased demand without it.

“There’s a lot of building, a lot of construction projects going on,” says Andrew Lentsch, COO of Unified. “So even without the infrastructure bill, I think there was still going to be an increase in demand. But, hopefully, that drives it even more.”

Similarly, The McLean Co., an Ohio equipment dealer, expects 2022 growth. Chris Reiser, the company’s crushing and screening specialist, describes his outlook as “cautiously optimistic” because of IIJA funds rolling out this year and his customers’ projections.

“You can forecast all you want on your own,” Reiser says. “You can say: ‘OK, we had 10 percent growth last year, let’s shoot for 15 percent this year.’ But at the end of the day, you’re only going to supply what’s needed. So if everybody you would otherwise sell to is growing, that’s a pretty good outlook for yourself as a business.”

Still, each year presents challenges. While increased demand and additional funding bodes well for industry stakeholders, supply shortages and delays aren’t going away anytime soon.

As of January 2022, Hubacz, Lentsch and Reiser each saw varying lead times for equipment, supplies and parts.

“Some are days,” Hubacz says. “Some are weeks. Some are months and months. Or, you get the ‘sorry, we just don’t know.’”

Hubacz adds that not knowing when parts will arrive can impact when projects get done.

“Even now, we can barely keep up with demand,” Hubacz says. “And then there’s a breakdown. We find out with the breakdown all we need is a simple sensor to fix the issue. You call your dealer [and] your dealer can’t tell you where one even is or when we will get it to you. So it is a giant problem.”

The McLean Co. supplies equipment coming from overseas. While its manufacturers have done a good job of getting equipment over as quickly as possible, Reiser says equipment sometimes gets stuck at backed-up shipping ports. It’s an issue that’s outside of a dealer’s or manufacturer’s control.

“So much of it depends on what these other countries are doing and what our port looks like,” Reiser says. “You could have a machine that you ordered six, eight months ago that’s finally coming in, but it might sit at [the] port for two to four weeks.”

Companies are also cautiously watching rising costs as 2022 unfolds. For Bond Construction, fuel prices are a factor to follow closely this year.

“The cost of doing business is on the rise,” Hubacz says. “This is mainly due to the elevated energy costs associated with gasoline and diesel. Everything from our aggregate production to our equipment needs are transported via trucks, plus all the different oil-based products we utilize every day. We’re all going to need to look at our bottom lines and make adjustments as needed.”

Unified Screening & Crushing, meanwhile, is hoping to see steel prices begin to level out at some point this year.

“Hopefully, the costs stabilize in the next 12 months,” Lentsch says. “There’s been quite a bit of increases over the last year to year and a half.”

Proving resilient

The concerns Hubacz, Lentsch and Reiser share are, of course, not new. These three and other industry leaders have been navigating the muddled supply chain and rising costs for the better part of the last two years.

Most industry leaders at least agree 2020 and 2021 were, all things considered, better years than expected for the aggregate industry. In fact, Reiser says he’s already seeing minor signs of improvement with supply delays versus 2021.

“I don’t think it’s anything really different than it has been, at least last year, as far as delays go,” he says. “I don’t think anything’s more delayed. If anything, we’re probably less delayed on our side of things.”

The year ahead is promising, Hubacz, Lentsch and Reiser say, with funds from the infrastructure bill, the return of large trade shows and an increased number of projects. And there’s no doubt among stakeholders that the industry is primed for another year of success.

“The demand for aggregates is up,” Hubacz says. “Pricing for aggregates is holding steady and even improving. These two factors together will give producers a solid foundation to invest in their companies, which will be great for the whole industry.”


To view the original article – click here

How Climate Affects Concrete – Hot Weather, Cold Weather, and Wind

Know what your concrete will likely do when the weather starts to get too hot, too cold, and/or too windy.

While working with concrete may come as second nature to many contractors, it is one of the trickiest substances to work with due to how quickly it can change when exposed to different temperatures, humidity, and wind rates. Ideal conditions for concrete are few and far between.

According to the ACI, concrete may be affected by, “…one or a combination of the following conditions that tends to impair the quality of freshly mixed or hardened concrete by accelerating the rate of moisture loss and rate of cement hydration, or otherwise causing detrimental results: high ambient temperature; high concrete temperature; low relative humidity; and high wind speed.” Under fair weather conditions, concrete can take anywhere from 8 to 48 hours to set properly. While concrete can reach its full strength in as little time as a week, it also takes nearly a month for it to cure properly.

However, anyone who has worked in construction before knows that weather conditions are seldom ideal.

While working with concrete may come as second nature to many contractors, it is one of the trickiest substances to work with due to how quickly it can change when exposed to different temperatures, humidity, and wind rates. The American Concrete Institute’s (ACI) technical publications are an excellent resource that provide insights regarding the plethora of effects of environmental factors on concrete. The ACI covers a variety of subtopics, ranging from extreme temperatures, humidity levels, wind velocity, natural disasters, saltwater, and freshwater’s effects on concrete in order to give contractors and concrete industry professionals accurate and up-to-date information.

Heat

The ACI’s (305.1 – 14 Hot Weather Concreting) specifications for setting and mixing concrete in hot weather suggests contractors should try to limit the maximum concrete temperature to 95º F. Contractors should ideally aim to work with, or pour, concrete when it is anywhere from 50-60º F. Under fair weather conditions, concrete can take anywhere from 8 to 48 hours to set properly. While concrete can reach its full strength in as little time as a week, it also takes nearly a month for it to cure properly.

However, anyone who has worked in construction before knows that weather conditions are seldom ideal, which is why contractors must have a firm understanding of the effects of hot weather on concrete structures and how to use weather to their advantage.

For example, concrete is known to set quicker in hot weather when compared to cold weather. This is because moisture found in freshly poured concrete evaporates at a quicker rate in hot weather and subsequently allows for a faster setting time.

Due to the rapid evaporation of moisture, concrete that is poured during warm weather conditions is also more likely to experience cracks. Concrete will also be prone to more cracks if it is poured in a location where the weather cools down quickly during the night. Because of these effects, concrete that is poured and cured in 75º F weather will likely outperform concrete that is poured and cured in 100º F weather. Simply put, timing and background knowledge are absolutely crucial when it comes to working with concrete in warm weather.

Cold

Cold weather, according to the ACI 306 – “Guide to Cold Weather Concreting”, is defined as three continuous days of low temperatures, specifically below 40º F. Additionally, the ACI also considers air temperatures below 50º F for more than 12 hours as “cold weather.”

Unlike working with concrete in hot weather, where certain warm temperatures can be used to a contractor’s advantage, colder temperatures can be detrimental to newly poured concrete.

When a concrete powder is mixed with water, an immediate chemical reaction will occur which results in an internal crystallization of the concrete. These crystals make it possible for concrete to withstand additional pressure that may be caused by frozen water molecules within the concrete.

Crystals will continue to grow for an extended period of time, even in cold weather. However, if temperatures drop below 15º they will no longer grow and the concrete will not cure at its full compressive strength.

Under ideal weather conditions, concrete can attain a minimum compressive strength of roughly 500 lbs. per square inch in as little as 24 hours. This is much harder to achieve in colder climates, so contractors have learned industry tricks to “fool” the concrete into thinking it’s in warmer conditions so it will ultimately cure faster.

The ultimate contractor rule when working with concrete in cold weather: Never pour concrete directly onto frozen or thawed ground space. The frozen ground will actually settle as it thaws. Because of this, concrete that is poured in very cold temperatures could also be susceptible to cracking, similar to working with concrete in warmer climates.

Wind

The ACI also states that wind velocity can affect freshly poured concrete by allowing too much water or moisture to evaporate from the concrete’s surface at a fast rate. In fact, the ACI technically classifies high wind velocity under hot weather due to the similar excessive loss of moisture concrete can experience when poured in warmer temperatures.

When concrete is poured during extremely windy weather, the rapid velocity of air will only contribute to excess moisture evaporating from the slab of concrete. Because of this, the abrasion resistance and curing condition of concrete will subsequently suffer.

Colder winds can produce what’s called a “wind chill,” which can strip excess heat from concrete. Additionally, plastic shrinkage cracking can occur when the surface of concrete dries before it has fully cured. To combat wind chill, it isn’t uncommon for contractors to turn to heaters to aid the curing process. Contractors can also use sealers to protect concrete from climates below 50º F.

Concrete is a delicate material. Unbeknownst to many people, it is not only affected by extreme temperatures, but also by humidity levels, as well as the velocity and intensity of the wind. Working with concrete demands skill and patience. It requires both the expertise of those working with concrete, as well as the cooperation of environmental factors in order to produce a smooth, strong, properly cured structure.


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Surging Multifamily Housing Starts Beat Forecasts

Demand for apartments near major employment centers has strengthened, reducing vacancy rates and driving rents higher.

Multifamily starts leaped 20.6% to a 539,000-unit annual rate. Demand for apartments has been surprisingly strong and rents have risen, giving developers confidence to move projects forward.

Single-family U.S. housing starts fell 2.8% in August, but the surging multifamily construction raised overall starts to beat expectations, rising 3.9%. Building permits jumped 6.0%. Total starts hit a 1.62-million-unit annualized rate after revisions raised the July totals, according to data from the Department of Commerce on Tuesday. The median estimate in a Bloomberg survey forecast a 1.55 million pace.

The drop in single-family starts has more to do with supply and labor shortages than weakening demand. “Builders are increasingly having to limit sales, as they are uncertain when they will be able to complete homes due to ongoing shortages of essential building materials,” says Mark Vitner, senior economist with Wells Fargo Securities.

The impact of supply shortages shows up in the rising number of single-family homes that have been permitted but not started, up 1.4% in August and 50% over the past year. Shortages are widespread. Similar to what is happening in the auto sector, a single part such as panel box or wedge anchors, can hold up construction.

Details in the Digits

Multifamily starts leaped 20.6% to a 539,000-unit annual rate. Demand for apartments has been surprisingly strong and rents have risen, giving developers confidence to move projects forward.

“The apartment market is seeing somewhat of a reversal of the pandemic exodus,” says Vitner. “Demand for apartments near major employment centers has strengthened, reducing vacancy rates and driving rents higher. Demand also remains strong in the suburbs, with many potential renters opting to renew their lease and wait for housing inventories to normalize.”

“The apartment market is seeing somewhat of a reversal of the pandemic exodus,” says Vitner. “Demand for apartments near major employment centers has strengthened, reducing vacancy rates and driving rents higher. Demand also remains strong in the suburbs, with many potential renters opting to renew their lease and wait for housing inventories to normalize.”

August’s 2.8% slide in single-family construction follows a 4.7% drop in July, but single-family construction remains at a robust 1.076-million-unit pace. Spot-market prices for lumber have plummeted, but those lower prices have not yet made their way to home builders.

Other essential building materials remain in short supply, including windows, cabinets, electric breaker boxes and wedge anchors. Builders are restricting sales due to the inability to let buyers know when homes will be completed.
Builder Confidence Rises in September

The September Housing Market Index (HMI) from the National Association of Home Builders and Wells Fargo points to where the single-family market is headed. The HMI rose one point in September to 76. While the index remains at a high level, it has been cooling since hitting an all-time high of 90 in November. The latest survey shows concerns about lumber prices have eased considerably, but builders are still dealing with widespread materials shortages, which is lengthening the time it takes to complete a home.

“The most encouraging aspect of the September HMI is the slight improvement in underlying demand,” says Vitner. “The present sales index rose one point to 82, following four months of decline.”

“The most encouraging aspect of the September HMI is the slight improvement in underlying demand,” says Vitner. “The present sales index rose one point to 82, following four months of decline.”

Prospective buyer traffic improved, although it remains well below levels seen earlier this year. Demand for homes remains strongest in the South and West, particularly the Mountain West. New home sales are increasingly being driven by the affordability migration from the West Coast and Northeast to more affordable markets in the Rocky Mountains, Southwest and Southeast. The influx of buyers from higher-priced housing markets has skewed new home sales more toward the upper-end of the price spectrum. Builders have focused their attention at this end of the market as well, contributing to the dearth of more affordable homes currently on the market.


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Concrete and cement industries brace for demand boom

$1 trillion infrastructure plan looks to create increased demand.

Concrete is the foundation of just about everything. It’s used to construct buildings, highways, bridges, roads and more.

During the Covid-19 pandemic, concrete fell victim to the same phenomena impacting other essential materials and goods: snarled supply chains and labor shortages. And demand for concrete — and its essential ingredient, cement — appears to have only increased, after the Senate passed the $1 trillion infrastructure package to upgrade America’s roads, bridges and tunnels.

“In the short-term, we continue to have the supply chain difficulties, particularly in certain markets, and so prices are rising,” Anirban Basu, chief economist for the national construction industry trade association Associated Builders and Contractors, told CNBC. “So right now, apparently, supply is not rising up to meet demand.”

The industry also faces labor shortages of skilled workers and truck drivers. And the recent housing boom means more demand for concrete and cement, putting more pressure on the industry to increase capacity.

On top of all of this, there’s also a push to reduce the amount of carbon emissions that come from the industry. A study published by the National Academy of Sciences in 2019 estimates that global cement production accounts for 8% of global carbon emissions, making it the largest single industrial emitter of carbon dioxide.

Watch the video

to learn more about the cement-concrete supply chain and whether the U.S. industry can handle the coming demand from the new $1 trillion infrastructure spending plan.

Here is a link to a video that does a great job explaining the current and forecast demand:


https://www.cnbc.com/video/2021/08/20/cement-industry-gets-ready-for-demand-boom-amid-us-infrastructure-push.html



To view the original article – click here

Multifamily construction remains strong

2021 multifamily housing outlook: Dallas, Miami, D.C., will lead apartment completions

In its latest outlook report for the multifamily rental market, Yardi Matrix outlined several reasons for hope for a solid recovery for the multifamily housing sector in 2021, especially during the second half of the year.

While multifamily owners, developers, and property managers collectively braced for severe drops in rent growth, construction starts, project completions, and availability of capital amid the COVID-19 pandemic, the drastic declines never materialized.

Rent growth did take a step back in select markets, especially in “high-cost gateway” metros like San Jose (-13.7%) and San Francisco (-9.4%), as renters continued to leave pricey urban neighborhoods for less-dense, cheaper suburban areas.

But on the flip side, “many tertiary and tech hub markets have benefited from migration out of the gateways,” wrote the authors of the Yardi Matrix report. Secondary and tech markets like the Inland Empire, Sacramento, Tampa, and Las Vegas all saw solid rent growth in 2020.

Multifamily construction pipeline for 2021

Other than the temporary shutdowns of work sites during the pandemic, construction work on multifamily housing developments continued to hum along through 2020 and into 2021. In all, 285,000 multifamily units were delivered throughout U.S. markets in 2020, down about 7% from 2019, but not nearly as severe a drop as many had predicte

According to Yardi Matrix, the multifamily sector has a “robust pipeline” of new projects, with some 765,000 units in some stage of construction as of early 2021.

This “should keep deliveries above that 300,000 mark for the next few years.” The firm projects 327,718 units will be delivered in 2021.

Here are the top 25 multifamily markets for 2021 (total number of construction completions, % growth in completions YOY):

  1. Dallas: 22,909 completions (+12.1% YOY)
  2. Miami: 16,262 (+66.3%)
  3. Washington, D.C.: 14,541 (+50.5%)
  4. Houston: 11,500 (-3.1%)
  5. Los Angeles: 11,296 (+16.5%)
  6. Atlanta: 10,939 (+9.7%)
  7. Austin: 10,301 (-10.0%)
  8. Seattle: 9,816 (+29.9%)
  9. Phoenix: 9,334 (+13.6%)
  10. Denver: 8,653 (-29.7%)
  11. Boston: 8,449 (+20.8%)
  12. Chicago: 7,797 (+0.8%)
  13. New York City: 7,335 (+24.2%)
  14. San Francisco: 7,166 (+64.8%)
  15. Twin Cities: 6,760 (+4.9%)
  16. Charlotte: 6,692 (+55.3%)
  17. Orlando: 6,662 (+21.5%)
  18. Philadelphia: 6,071 (+27.7%)
  19. Nashville: 5,457 (+41.1%)
  20. Tampa–St. Petersburg: 5,103 (+20.1%)
  21. San Antonio: 4,960 (-6.5%)
  22. New Jersey–Northern: 4,955 (+29.9%)
  23. Salt Lake City: 4,633 (-0.6%)
  24. Louisville: 4,484 (+215.6%)
  25. White Plains: 4,464 (+199.6%)

To view the original article – click here