As we start looking toward the last quarter of 2022, it’s worth noting that despite recent challenges such as global supply chain and labor shortage, the construction industry is continuing in pandemic recovery. Dodge Construction Network reports that, compared to 2021, commercial and multifamily construction starts in the top 20 US metropolitan areas increased by 24% in the first half of 2022. While Chief Economist Richard Branch notes that recent policies to fight inflation and ongoing key shortages point to an incoming recession and subsequent slow-down for construction starts, the rising demand for apartments and condos in metro areas also indicates stability in consumer need, and consequently, opportunities for project starts down the line.
As we keep our eye on where the industry is growing and keeping stable, here are the top five US metro areas for multifamily and commercial starts:
In comparison to the previous year, commercial and multifamily construction starts in the New York metro area saw an increase of 20% in the first half of 2022. While commercial starts were down year-to-date (retail being the sole sector to see growth), multifamily starts showed a considerable 51% growth. Large-scale projects include the $800 million Two Bridges mix-use complex in Manhattan and the $76 million Facebook office renovation in Hudson Yards.
Commercial and multifamily construction starts in the Dallas-Fort Worth metro area shot up nearly 75% year-to-date in the first half of the year, with commercial starts increasing more than 80%, largely due to growth in both the office and warehouse sectors. Notable commercial starts include two Walmart distribution centers, both valued at more than $150 million, and the $115 million Ryan Office Tower. Multifamily saw an increase of 60% year-to-date.
The Washington D.C. metro area saw a 35% growth in commercial and multifamily construction starts, with total valuation increasing to more than $5 million. Multifamily starts increased by nearly 15% year-to-date, with notable projects including the $329 million Reston next Block D mix-use build and the $125 million Atworth College park affordable housing project. Commercial starts grew by a staggering 57%, with retail as the only sector to experience a decline. Noteworthy commercial starts included the nearly $1 billion Digital Dulles data centers and the $400 million Rose Gaming Resort.
In the first six months of 2022, Commercial and multifamily construction starts in the Miami metro area rose by more than 30% to $4.5 billion. Downward turns in parking, hotel, and warehouse sectors slowed growths in commercial starts down to 2%, with the largest projects including the $300 million Royal Caribbean headquarters. On the other hand, multifamily housing starts grew by more than half, with the most noteworthy projects including the nearly $200 million new Alina residences and the $150 million Selene Oceanfront project.
The Austin metro area saw impressive growth of 70% in commercial and multifamily starts in the first half of 2022. Multifamily starts increased by 25% year-to-date, with its largest projects including the 5th & Colorado mix-use tower, valued at over $350 million. Commercial starts more than doubled year-to-date largely due to growth in the office, parking, hotel, and retail sectors – notable projects here include the Waller creek office and mix-use building valued at more than $500 million and the $180 million Springdale Green office project.
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