File photo
File photo
The value of multifamily and commercial construction projects in Houston in 2020 has been valued at $4.5 billion, a 47% percent drop from the previous year.
This follows a 55% gain in 2019, according to Dodge Data & Analytics.
All types of building construction starts faced declines in 2020, although several major commercial projects broke ground in 2020. Those include Hewlett Packard’s Enterprise campus at Cityplace; the Hyatt Place/Hyatt House Hotel; and an Amazon distribution center in Richmond. These projects were worth $100 million (Hewlett Packard) and $85 million each for Hyatt Place/Hyatt House Hotel and Amazon.
On the multifamily side, the $217 million Hanover Square & Bayou Apartments project, followed by the High Street Residential Apartments, valued at $200 million, and Boone Manor Apartments were the largest multifamily construction projects to break ground in Houston in 2020.
“The pandemic is having a significant negative impact on commercial and multifamily construction across the country,” Richard Branch, chief economist for Dodge Data & Analytics, said. “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 said the construction industry is expected to show a bit of recovery this year, but he doesn’t expect a quick return to pre-pandemic levels.
“The effects of the pandemic on the U.S. economy and building markets will be felt for several years,” Branch said.
Commercial and multifamily construction starts across the United States fell to $111.1 billion in 2020, according to the Dodge Data & Analytics report. Starts declined across the nation to $193.4 billion, which is a 20% drop.
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