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CRE Construction Volume Declined 7% in 2017
Many of the leading U.S. metropolitan areas for commercial and multifamily construction starts showed reduced activity in 2017 compared to levels reported during 2016, according to Dodge Data & Analytics. The volume of commercial and multifamily construction starts nationally was $194.7 billion, down 7% from 2016, mostly due to a multifamily pullback, although it was still 8% above the amount reported for 2015.
Dodge Data & Analytics chief economist Robert A. Murray says, “Of the commercial and multifamily project types, multifamily housing is the one that appears to have already reached its peak and is now heading downward, as shown by the 12% decline in dollar terms during 2017.”
Of the top 10 markets, seven registered declines. For the metropolitan areas ranked 11 through 20, the 2017 performance was more evenly-balanced, with just four reporting declines. The New York metropolitan area, at $25.2 billion in 2017, continued to be the leading market in the U.S. for construction starts, although it dropped 16% from its 2016 amount.
The other six metropolitan areas in the 2017 top 10, with declines from their 2016 amounts were:
– Los Angeles ($8.1 billion), down 20%
– Dallas-Ft. Worth ($7.5 billion), down 17%
– Washington DC ($7.3 billion), down 16%
– Miami ($6.6 billion), down 20%
– Chicago ($6.5 billion), down 26%
– Boston ($5.4 billion), down 26%.
Each of those six metropolitan areas had registered double-digit gains of at least 25% during 2016.
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