businessReal Estate

D-FW commercial building starts took a dive in October

Residential construction activity rose from last year, according to Dodge Data & Analytics.

A plunge in commercial building starts in October pulled down Dallas-Fort Worth construction activity for the month, even with an increase in residential building.

Nonresidential construction starts in the D-FW area fell 39% compared with October 2019, according to the latest report from Dodge Data & Analytics.

Residential building activity was up 18% from a year earlier. Total construction starts for October were down 13% year-over-year.

Through the first 10 months of 2020, nonresidential construction activity in North Texas has fallen 11% from the same period last year. Residential starts are up 10% for the year.

So far in 2020, $19.8 billion in construction activity has been recorded in the D-FW area, according to Dodge Data. As of the third quarter, D-FW ranked behind only New York City in total new construction.

Nationwide construction activity is down 11% for the year. Nonresidential building starts around the country fell 24% from the first 10 months of 2019 and residential construction was 2% higher, according to Dodge Data.

October saw a 12% monthly nationwide increase in building starts.

“The month’s increase, however, does not mean all is well with the economy and construction sector,” Richard Branch, chief economist for Dodge Data & Analytics, said in the report. “The economy lost traction as the stimulus provided by the CARES Act ended.

“With the next wave of COVID-19 infections looming, the economy will continue to lose steam until more fiscal stimulus is provided and a vaccine has been widely adopted,” he said. “Until that has occurred, the construction sector will continue to be volatile.”

Steve Brown, Real Estate Editor. Steve covers commercial and residential real estate in Dallas-Fort Worth.

stevebrown@dallasnews.com @SteveBrownDMN
Real Estate

Get D-FW real estate news

Get the latest real estate news from Steve Brown and the business staff at The Dallas Morning News.

By signing up you agree to our privacy policy