U.S. construction performed well despite pandemic

Despite the ongoing presence of COVID-19, commercial and multifamily construction starts performed well in 2021, according to a just-released survey.

The value of commercial and multifamily construction starts in the top 20 U.S, metropolitan areas increased 18 percent between 2020 to 2021, according to Dodge Construction Network, a New Jersey-based firm that provides data and analytics to the construction industry.

Nationwide, commercial and multifamily construction starts increased 16 percent in 2021.

“Commercial and multifamily construction starts staged a strong rebound in 2021, despite the continued impact of the COVID-19 pandemic,” said Richard Branch, chief economist for Dodge Construction Network, in a statement. “This recovery, however, has been fairly uneven with the focus on warehouse and multifamily activity, while office and hotel construction remain more constrained by the pandemic.

New York City, Dallas and Miami were the top three markets for commercial and multifamily construction starts last year. The Inland Empire – the 20th and last market in the survey – recorded $3.1 billion in commercial and residential starts in 2021, a year-over-year increase of 41 percent.

This year should produce “a more even recovery,” while multifamily will continue to benefit from the high housing prices,” Branch said in the statement, while adding that inflation and the labor shortage will continue to limit growth.