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May 2021 U.S. Census Bureau new residential construction shows a 1.6% decrease in single family permits month over month but a large increase in permits year over year suggesting that we are moving away from the pandemic lows but also that the hot housing market may be beginning to cool off. We see multi-family construction permits down 7.7% month over month and up only 10% from May 2020. The number of single family homes authorized but not started increased by 3.6% to a one year high. However, the number of multi-family homes authorized but not started decreased by 4.1%.  Single…moreMay 2021 New Residential Construction – Census Bureau

Over the past year we have seen an increase in construction spending of 9.8%. Total residential spending increased by 29.5% while non-residential spending decreased by 3.9%. We see the largest declines in spending from the lodging industry down 21.9% from this time last year. We also see a large monthly decrease in spending on public safety. This is expected as more people are vaccinated and we see a return to normality. We see the largest increases in spending in the water supply industry as well as the sewage and waste disposal industry, both have grown by 2.5% and 2.2% over…moreApril 2021 P.I.P. Construction Spending – U.S. Census Bureau

April 2021 New Residential Construction data from the Census Bureau out May 18th shows permits for single family homes down 3.8% from last month but up 70.7% from April of 2020. Permits for developers have increased by 11.1% from last month and 44.4% from April of 2020 suggesting developers may be moving on opportunities in the market.  Delays in starts after issuance of permits are up 4% for single family homes and 5.4% for developers from last month; while the number of permits issued and not started has increased by 43.2% from last year. Increases in delays may be due…moreApril 2021 New Residential Construction – Census Bureau

Today we’re looking at the March 2021 value of construction put in place spending. This time last year we saw P.I.P. spending around 1.436 trillion dollars. Over the past 12 months construction has grown 5.3% to 1.513 trillion dollars. Residential construction spending has increased by 23.3% in the same time period and the share of residential construction to total construction has increased 7.07% from 41.48% to 48.55%.  Few industries saw growth in this past year. Education, Public Safety, and Sewage and Waste disposal all saw increases this past year of 7.7%, 3.7%, and 1.1% growth respectively. Industries seeing the largest…moreMarch 2021 Construction Spending Report – Census Bureau

This time last year many states and communities across the world went into a lockdown halting business and taking an extreme toll on the economy. Since then we have seen a tremendous boom in the single-family housing market and a corresponding increase in the price of materials due to supply shortages. Many projects that were viable before the lockdowns and changes in material prices are no longer viable. A shortage in the supply of new projects has created competition for construction companies all around.  Since this time last year we have seen a 35.6% increase in single-family housing permits and…moreMarch 2021 Residential Construction Report – Census Bureau

The total value of put in place spending for Construction in February 2021 decreased by 0.8% from last month; however, spending has increased by 5.3% from February 2020 demonstrating a strong recovery in the overall market. This has been led by increased residential construction spending as the year over year value rose by 21% from $600.5 billion to $727.4 billion. Non-residential construction has not seen the same recovery in the past year with total spending declining in the 1 year period 6.1% from $840.5 billion to $789.5 billion. From January 2021 we have seen declines of .02% in the residential…moreFebruary 2021 Construction Spending Report – Census Bureau

In the movie “Moneyball” (2011) Brad Pitt and company portray the 2002 Oakland A’s coaching staff as they use data analytics to build a competitive baseball team despite having one of the smallest budgets in Major League Baseball. While the A’s were unable to secure a spot in the world series they were able to break the Yankees 1947 record for most consecutive wins, clinching 20 wins in a row. While many believe that the team was overall unsuccessful the case for using analytics was made.  Innovation breaks the traditional model and provides new ways to understand information in baseball…moreSuccessful Cloud-Based Analytics

This year permits are being sought at a rate 10% lower than this time last year. Single family units are taking longer to get started compared with this time last year, however developers are seeing only a 1% increase in time to start. Although less units are being started this month than last month, single family homes are being started at approximately the same pace as last year. However, there are 15% more single family homes under construction this year compared to last year suggesting that it is taking longer to construct them than last year, this is likely due…moreFebruary 2021 Residential Construction Report – Census Bureau

Permits are up 22.5% year/year suggesting pent up interest in development, evidenced by a major month/month increase in developers seeking permits, up 28%. Units permitted but not started are up 3.6% year/year for developments. Permits have increased by 28.1% year/year for single family homes while starts are down 12.2% month/month suggesting there is a low supply of builders given the demand. Development starts are up 16.2%, good news that shows developers are ready to get back in the game despite being down 35.1% year/year. An increase of 16.1% year/year in the number of starts still under construction in the single-family…moreJanuary 2021 Residential Construction Report – Census Bureau

The economy remains resilient as fresh stimulus combined with multiple vaccines provide hope for American consumers; marginal increases in total retail and durable good spending provide an optimistic sign that spending has recovered during 2020 despite tremendous financial difficulties for many. Many suppliers adapted to their circumstances last year by shrinking inventory; we expect reduced inventories to remain moving forward as business leaders keep their companies agile. As the vaccine continues to be dispersed the unemployment rate should return to a healthy ~4%. We expect wages to remain constant throughout 2021 as businesses recover, however, there is the possibility that…moreConstruction Outlook 2021