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Houston Commercial, Multifamily Construction Totaled $4.5B in 2020

Published Feb 02, 2021 by A.J. Mistretta

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The value of commercial and multifamily construction starts in the Houston region dropped 47% in 2020 to $4.5 billion, according to the latest data from Dodge Data & Analytics. The decline, brought on in large part by the COVID-19 pandemic, followed a 55% gain in starts in 2019. 

Houston commercial building starts alone fell 47% last year with all major building types posting significant year-over-year declines, the report shows. Multifamily starts declined 48%. Dodge reports several major commercial projects broke ground in 2020 including: 

  • $100 million Hewlett Packard Enterprise campus at Cityplace
  • $85 million Hyatt Place/Hyatt House Hotel 
  • $85 million Amazon distribution center in Richmond 

The largest multifamily project to break ground during the year was the $217 million Hanover Square & Bayou Apartments, followed by the $200 million High Street Residential Apartments.

The value of commercial and multifamily starts across the top 20 U.S. metros fell to $111.1 billion in 2020, a 23% decline from the prior year, according to the Dodge report. Nationally, starts declined 20% to $193.4 billion.

“The pandemic is having a significant negative impact on commercial and multifamily construction across the country,” stated Richard Branch, Chief Economist for Dodge Data & Analytics. “While some areas stabilized over the summer, the current wave of the virus has further hindered activity. The recently passed $900 billion stimulus plan will go a long way towards re-energizing the economy.” Branch continued, “The construction sector will show signs of recovery in 2021, but, the road back to full recovery will be long and difficult. The effects of the pandemic on the U.S. economy and building markets will be felt for several years.”

Houston ranks 10th in the U.S. in terms of the value of new construction starts in 2020. New York, Washington D.C. and Los Angeles are the top three markets in order. 

View the latest real estate data from the Partnership. 

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