Commercial and apartment building starts in North Texas soared more than 70% in the first half of 2022.
The Dallas-Fort Worth area was second in the nation after New York with $8.1 billion in new construction, according to the latest estimate from Dodge Data & Analytics.
Commercial and multifamily construction activity in the D-FW area has more than doubled since before the COVID-19 pandemic in 2019. Annual construction has increased even with the impact of the pandemic.
North Texas construction totals were boosted by strong gains in office and warehouse building, according to Dodge Data. The biggest construction projects to start in the first half of 2022 included two Walmart fulfillment centers valued at more than $360 million and the $115 million Ryan office tower in Plano’s Legacy West development, officials found. Dodge analysts.
D-FW apartment starts are up 60% from the first half of 2021.
Nationally, commercial construction activity increased in 12 of the 20 major US metropolitan areas. Commercial and multi-family housing starts increased 24% across the country in the first six months of 2022.
After D-FW, Austin had the largest construction start-up gains among the 10 largest markets with a 70% increase in construction. Housing starts are up 20% year over year in the Houston area.
“The construction industry is at a crossroads,” Richard Branch, chief economist for Dodge Construction Network, said in the report. “The post-pandemic recovery has transformed in 2022 to encompass more sectors than warehouses and single-family housing despite runaway inflation of building materials, a lack of key assets and a severe shortage of skilled labor in the construction.
“While the level of projects currently being planned portends a bright second half, the Federal Reserve’s fight against inflation has weighed on the economy and raised fears of a recession,” Branch said. “As a result, housing starts are likely to move sideways in the second half of the year and potentially stagnate as the calendar shifts to 2023.”
The D-FW area leads the nation in industrial construction with over 70 million square feet of warehousing and distribution space under construction.
And North Texas has the highest volume of apartment buildings in the United States with more than 56,000 rental units under construction.
The D-FW area also led the rest of the country in office space this year with 3.8 million square feet of new buildings opening.
North Texas has for several years been second only to the New York metropolitan area in the total number of commercial buildings.