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.”
