New construction spending lags in start of 2017, study says

by John Frank


In February, nonresidential construction spending soared, while the residential market has experienced declines in spending, according to the latest report from Dodge Data and Analytics.

Nearly a four-fold increase was seen in spending for non-residential buildings, with $237 million spent in February 2016 and $947 million last month. Although non-residential construction is abundant, residential construction dropped by 22 percent from $1 billion in February 2016 to $775 million this year, a 39 percent decrease.

Comparing year-to-date numbers for 2016 and 2017, again nonresidential construction has more than doubled, with $585 million in spending in 2016 and $1.3 billion so far this year. Residential starts decreased by 17 percent, from $1.6 billion in 2016 to $1.3 billion in 2017. Total spending increased by 23 percent from $2.2 billion to $2.7 billion.

These numbers come in the middle of a housing shortage in the area, which has in turn caused housing prices in the area to rise.

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