Multifamily Housing Construction Starts Drop Four-Percent in June According to Latest Report From Dodge Data & Analytics

HAMILTON, NJ – Total construction starts increased 6% in June to a seasonally adjusted annual rate of $641.4 billion. This marks the second consecutive monthly gain in construction starts following the COVID-19 induced declines in March and April. In June nonresidential building starts gained 6% and starts in the nonbuilding sector went 27% higher. Residential starts, by contrast, fell 6% during the month.
Through the first six months of the year, starts were down 14% from the same period in 2019. Nonresidential starts fell 22%, nonbuilding starts were down 14%, and residential starts dropped 5%. For the 12 months ending in June 2020, total construction starts were down 2% from the previous 12 months. Nonresidential building starts were down 7% and residential building starts were flat, but nonbuilding starts were 3% higher in the past 12 months. In June, the Dodge Index went 6% higher to 136 (2000=100) from the 128 reading in May. Compared to a year earlier, the Dodge Index was down 28%
Construction starts activity remains significantly weaker than year-ago levels, even though it has been slowly increasing since its nadir in April, stated Richard Branch Chief Economist for Dodge Data & Analytics. May s gain in starts was fueled by a handful of very large projects, but June s gain appears to be much more organic in nature. Construction starts should continue to post modest gains in the months to come as the economy continues to recover from the shortest and steepest recession in U.S. history. But, the recent acceleration in new COVID-19 cases in states such as Texas, Florida, and California is a significant downside risk to the economy and the construction industry s growth trajectory.
Nonbuilding construction rose 27% in June to a seasonally adjusted annual rate of $191.1 billion. Utility/gas plants went 108% higher in the month due to the start of over $2.0 billion in renewable power projects (split between solar and wind facilities). The miscellaneous nonbuilding category rose 63% in June, while environmental public works went 38% higher. Construction starts for highways and bridges dropped 4% during the month.
The largest nonbuilding project to break ground in June was the $1.4 billion Federal Way Link Extension in Seattle WA. Also starting during the month were the $600 million Golden Hills Wind Project in Sherman county OR and the $438 million Athos I solar facility in Desert Center CA.
Through June, total nonbuilding starts were down 14% compare to the same time period in 2019. Highway and bridge construction starts were up 8%, while environmental public works and the miscellaneous nonbuilding sector were each 20% lower through the first six months of the year. Utilities/gas plants were down 40% on a year-to-date basis. On a 12-month rolling basis, total nonbuilding starts were up 3% from the 12 months ending June 2020. Starts in the utility/gas plant category were 14% higher, while miscellaneous nonbuilding starts increased 6%. Street and bridge starts were 1% lower for the 12 months ending June, while environmental public works were down 4%.
Nonresidential building starts went 6% higher in June to a seasonally adjusted annual rate of $198.5 billion. Institutional building starts rose 15% during the month, while commercial building starts went 4% higher. Manufacturing starts, but, fell 32% following the start of a $950 million steel plant in May.
The largest nonresidential building project to break ground in June was the $384 million Women s and Children s hospital tower in San Antonio TX. Also starting in June was the $306 million Aligned Energy Data Center in Ashburn VA and the $294 million renovation of SeaTac International Airport in Seattle WA.
On a year-to-date basis, total nonresidential building starts were 22% lower than the first six months of 2019. Institutional building starts were down 15%, while commercial starts were 27% lower. Manufacturing starts dropped 38% on a year-to-date basis. On a 12-month total basis, total nonresidential building starts were 7% lower than the 12 months ending June 2019. Commercial starts have dropped 8%, while institutional starts were down 9%. Manufacturing starts are 9% higher on a rolling 12-month basis.
Residential building starts fell 6% in June to a seasonally adjusted annual rate of $251.8 billion. Both multifamily and single family starts were lower during the month, with single family falling 7% and multifamily dropping 4%.
The largest multifamily structure to break ground in June was a $170 million mixed-use project in Jersey City NJ. Also starting during the month were the $113 million Flower Mart Apartments in Mountain View CA and the $100 million 509 4th Avenue project in New York NY.
Through the first six months of 2020, residential construction starts were down 5% versus the same time period in 2019. Single family starts were 1% lower, while multifamily starts were down 16% year-to-date. For the 12 months ending in June, total residential starts were flat when compared to the prior 12 months. Single family starts were up 3%, while multifamily starts were off 6%.

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The NRP Group Continues Commitment to Creating High-Quality Affordable Housing with Addition of 900-Units in Texas

SAN ANTONIO, TX – The NRP Group, a vertically-integrated, best-in-class developer, builder, and manager of multifamily housing, announced it has broken ground on four new affordable housing developments in Texas, totaling 922 units and over $175 million investment. The communities include The Arcadian, The Scott at Medio Creek, and Luna Flats, located in San Antonio, as well as Independence at Collin McKinney in the quick-growing Dallas suburb of McKinney, TX.
“The COVID-19 pandemic continues to test us in unprecedented ways,” said J. David Heller, Co-Founder and Chief Executive Officer at The NRP Group. “As we come to terms with its impact, we are joining with local municipalities to address the economic and social inequities the virus has exposed within our community. Building more affordable housing is one way we are facing these problems head on and ensuring there are housing solutions available to those who need it most.”
The NRP Group is the largest U.S. developer building both market-rate and affordable communities at scale. In the midst of the COVID-19 pandemic and ensuing economic downturn, the company is accelerating its development and construction of affordable housing to meet increased demand. Since opening its Texas office in 2004, NRP has developed 65 affordable housing developments, totaling 12,500 units of affordable housing, at an investment of over $1.5 billion.
“Sixteen years after we entered the Texas market, NRP continues its commitment to Texas and our mission of making exceptional housing opportunities for individuals and families, regardless of income,” said Jason Arechiga, Senior Vice President of Development at The NRP Group. “We want to provide a safe, quality affordable home for working families now and in the future.”
Located at the intersection of two major highways (Loop 1604 and Interstate 10), The Arcadian at 4611 E. Loop 1604 North will provide quick access to San Antonio’s urban core, dining, shopping, and cultural attractions, as well as the city’s job centers. The 324-unit plotted community is less than a 15 minute drive to Joint Base San Antonio-Randolph, a United States Air Force Base and a major employer within the city.
The Scott at Medio Creek is located at 9130 Excellence Drive in Southwest San Antonio adjacent to Loop 410 and I-35. Named for U.S astronaut David Scott, the 324-unit community is minutes away from Joint Base San Antonio-Lackland, as well as Port San Antonio, an innovation district and employment hub for technology, aerospace, cybersecurity, logistics, and manufacturing. Nearby community amenities include Miller’s Pond Park & Community Center, as well as the 500 acre Pearsall Park.
Located at 510 Alametos Street along San Pedro Avenue, Luna Flats will transform a dilapidated car lot into a 69-unit workforce housing development along a transit-rich corridor in San Antonio’s Midtown Regional Center. The community will include a mix of floorplans ranging from one- to three-bedroom units, and common amenities such as a health and wellness center, business center, clubhouse lounge, laundry facilities, and picnic areas.
Independence at Collin McKinney is located in the quick-growing Dallas suburb of McKinney, TX, which Money Magazine ranked as the #1 Best Place to Live in America, due to surrounding schools, employment, safety, and overall positive quality of life. Located at 2150 Collin McKinney Parkway just west of US-75 and north of SH-121 at the corner of Test Drive, the 205-unit development will address the acute workforce housing shortage in the area.
The Arcadian, The Scott at Medio Creek, and Independence at Collin McKinney will include one- through four-bedroom apartments as well as state-of-the-art community amenities such as a resort-style swimming pool, fitness center, business center, clubhouse lounge, laundry facility, picnic areas, a playground, and a children’s activity center with after-school homework help programming.
All four residential communities are scheduled for completion in early 2022.

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Wood Partners Announces Groundbreaking of 403-Unit Alta Davis Luxury Residential Community in Durham, North Carolina

DURHAM, NC – Wood Partners, a national leader in multi-family real estate development, announced the groundbreaking of its newest luxury residential community – Alta Davis – in Durham, North Carolina. Construction is now underway, and the community is scheduled to open in late 2021.
Alta Davis is located minutes away from Research Triangle Park (RTP), the largest research park in the United States. Residents will have simple access to more than 250 businesses and 50,000 technology and life sciences jobs. The site is also in close proximity to the Imperial Center Business Park and Perimeter Park, two other employment hubs that contribute approximately 14,000 additional jobs to the area.
“We are excited about the opportunity to bring a residential community of the highest quality into this submarket, accommodating the growing number of new jobs in the region,” said Wood Partners Managing Director Caitlin Shelby. “We know this community will provide residents with simple access to work while giving them a comfortable neighborhood feel when they come home.”
Aside from the booming job market, Durham is famously home to Duke University, itself a major employment and research hub. Duke recently announced a $100 million investment in RTP for an expansion of their School of Medicine, in addition to several private sector investments in the wake of the Covid-19 pandemic.
More than just a college town, the American Tobacco Campus and a contemporary brewery scene add to Durham’s cultural side, while nearby local parks, including Sarah P. Duke Gardens and Eno River State Park, offer residents the chance to easily explore the outdoors.
Easily accessible transportation nearby includes Interstates 40, 540 and NC-147, which provide unparalleled access throughout the Triangle region. Each highway is accessible within a few minutes from the new community.
Alta Davis will offer a conveniently located community with large apartments and abundant amenities. Once complete, Alta Davis will include 403 units across seven buildings, each four tales. All units will be elevator-served and will include high-quality finishes and amenities such as quartz counters, tile backsplash and hardwood-style flooring. On-site amenities include a coffee bar, game room, high-tech fitness center, and saltwater swimming pool in addition to abundant co-working space.

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