The Dallas-Fort Worth housing market came out of 2020 with robust numbers despite COVID-19, low inventory, and economic setbacks. The market continues to lead the nation in the ongoing construction of apartments.
But the pandemic did impact a segment of the real-estate market — commercial and multifamily construction starts.
The operative word here is starts. Construction starts are when excavation begins for the footings or foundation of a building. All housing units in a multifamily building are defined as being started when excavation for the building has begun.
D-FW sustained a 20-percent or $6.8 billion decrease in value for commercial and multifamily construction starts, according to a recent Dodge Data & Analytics analysis.
It could have been worse. The nation’s top-10 metro areas suffered a 23 percent drop in starts. New York took a big hit with a 25 percent decline and $23.5 billion loss in value. Phoenix, Denver, and Kansas City were the only metro areas that saw an increase in construction. Austin ranked ninth with nearly $4.9 billion on construction starts.
The commercial and multifamily total is comprised of office buildings, stores, hotels, warehouses, commercial garages, and multifamily housing. Not included are institutional building projects, manufacturing buildings, single-family housing, public works, and electric utility/gas plants.
In 2019, D-FW experienced an 18 percent gain in starts.
“The pandemic is having a significant negative impact on commercial and multifamily construction across the country,” Richard Branch, Dodge Data & Analytics chief economist said in the report. “While some areas stabilized over the summer, the current wave of the virus has further hindered activity.”
In 2020, D-FW multifamily housing starts fell 15 percent and commercial starts fell 23 percent.
Dodge Data & Analytics cited the $75 million Novel Turtle Creek residential tower as the largest multifamily building project to get underway. Dodge also listed the $65 million Shannon Creek Apartments in Burleson and the $64 million Stevenson Oaks Senior Living Complex in Fort Worth.
Dodge cited the decline in pullbacks in office, hotel, and parking structures.
“The recently passed $900 billion stimulus plan will go a long way towards re-energizing the economy. The construction sector will show signs of recovery in 2021, but, the road back to full recovery will be long and difficult.”
