Major US cities saw sharp drops in new construction projects in 2017: report

Multifamily pullback drove the decline in New York, LA and Miami

Multifamily and commercial construction slowed in most major U.S. metro areas last year, according to a new report. Major declines in funding for new construction starts were registered in cities like New York, Miami and Los Angeles.

The report by Dodge Data & Analytics tracked the 20 cities with the highest dollar contribution for new construction projects last year. The total was $194.7 billion, down from $209 billion in 2016.

Dodge mostly attributed the decrease to a pullback in multifamily construction; that sector was down 12 percent overall. Commercial building experienced a less dramatic 3 percent slide.

The New York-Northern New Jersey-Long Island metro area saw $25 billion worth of projects that broke ground last year. That was by far the top market for new construction in the ranking. Total was a 16 percent drop from 2016.

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New commercial building was off by more than 25 percent. Multifamily construction slid 4 percent. Experts say a portion of that decline could be attributed to the Affordable New York legislation, an affordable housing tax abatement program that replaced the 421-a abatement.

Los Angeles, which was second on the list, recorded $8 billion worth of construction starts last year. It saw multifamily drop 17 percent and commercial dip nearly 25 percent. The largest projects there were the $150 million JW Marriot Hotel in Anaheim and the $110 million Porter Ranch retail center in Northridge.

Miami registered a total of $6.6 billion in new construction, down 20 percent from 2016. That was good for sixth on the list. The decline reversed a sharp increase in 2016. Multifamily construction, which is at a low-point in the city, fell by half.

Miami’s overall numbers don’t paint the whole picture though. Commercial construction was a positive point, up 40 percent. That’s thanks in part to the $1.5 billion expansion of the Seminole Hard Rock Hotel & Casino in Hollywood, which is set to open in mid-2019.

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Major US cities saw sharp drops in new construction projects in 2017: report

Multifamily pullback drove the decline in New York, LA and Miami

Multifamily and commercial construction slowed in most major U.S. metro areas last year, according to a new report. Major declines in funding for new construction starts were registered in cities like New York, Miami and Los Angeles.

The report by Dodge Data & Analytics tracked the 20 cities with the highest dollar contribution for new construction projects last year. The total was $194.7 billion, down from $209 billion in 2016.

Dodge mostly attributed the decrease to a pullback in multifamily construction; that sector was down 12 percent overall. Commercial building experienced a less dramatic 3 percent slide.

The New York-Northern New Jersey-Long Island metro area saw $25 billion worth of projects that broke ground last year. That was by far the top market for new construction in the ranking. Total was a 16 percent drop from 2016.

Sign Up for the undefined Newsletter

By signing up, you agree to TheRealDeal Terms of Use and acknowledge the data practices in our Privacy Policy.

New commercial building was off by more than 25 percent. Multifamily construction slid 4 percent. Experts say a portion of that decline could be attributed to the Affordable New York legislation, an affordable housing tax abatement program that replaced the 421-a abatement.

Los Angeles, which was second on the list, recorded $8 billion worth of construction starts last year. It saw multifamily drop 17 percent and commercial dip nearly 25 percent. The largest projects there were the $150 million JW Marriot Hotel in Anaheim and the $110 million Porter Ranch retail center in Northridge.

Miami registered a total of $6.6 billion in new construction, down 20 percent from 2016. That was good for sixth on the list. The decline reversed a sharp increase in 2016. Multifamily construction, which is at a low-point in the city, fell by half.

Miami’s overall numbers don’t paint the whole picture though. Commercial construction was a positive point, up 40 percent. That’s thanks in part to the $1.5 billion expansion of the Seminole Hard Rock Hotel & Casino in Hollywood, which is set to open in mid-2019.

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