The fierce pace of construction in the Austin area may be tapering off somewhat. Data compiled by Dodge Data & Analytics shows that commercial and public construction starts are down 17 percent for the first five months of 2016 compared to the same period in 2015.
Residential construction is up 14 percent for the first five months of 2016 compared to a year ago, but May’s figures cast a mist of uncertainty about local housing trends. Residential construction starts in May were down 16 percent compared to May 2015. Should that downward drift continue through the summer — normally a busy home buying time frame — it could translate into more acute supply and demand challenges, a situation that has plagued Austin with increasing intensity during the past couple of years.
Dodge’s information is gathered from five counties: Travis, Williamson, Hays, Bastrop and Caldwell.
Here are the specific values for construction starts for the first five months of 2016:
▪Nonresidential: $964,462,000 compared to $1,186,996,000 in 2015, a decline of 17 percent.
▪Residential: $2,077,569,000 compared to $1,830,140,000 in 2015, an increase of 14 percent.
Here are the specific values for construction starts for the month of May:
▪Nonresidential: $122,965,000 compared to $122,875,000 in May 2015, statistically the same.
▪Residential: $371,330,000 compared to $442,288,000 in May 2015, a decline of 16 percent.
View article at Austin Business Journal