New from MPF Research: Construction Slowdowns, Cooling Metro Approvals, Job Gain Champs
We’d like to catch you up on some of the most interesting updates that have been released by MPF Research since our last update! While MPF carries out extensive research on specific metros as well, the following are summaries of some recent findings with national implications:
Frenzied apartment construction slows timetables
MPF Research reports that over 750,000 new units have been added to the U.S. apartment stock over the past three years. This represents the highest number ever recorded since MPF began tracking the data, and the number probably will not peak until the latter part of 2017. Not surprisingly, MPF found that the average time of construction has gotten longer, with skilled labor in short supply (almost 70% of construction companies are having trouble finding enough skilled, experienced workers). Another factor has been the shift from low-rises to high-rises, typically in downtown metro areas, where strict permits and building codes in addition to the naturally slower pace of building high-rises are slowing things down overall. For a full update, check out “Apartment Construction is Taking Longer Than Ever.”
New construction approvals slow in major metros
The Census Bureau’s preliminary data indicates that during November of 2016, total multifamily permits dropped 14.5% from October and was 19.8% lower than in November of 2015. The year-to-date figure of 370,100 units at the end of November was down 10.1% from the prior year. As we reported in earlier blog articles, this cooling represents not a construction recession by any means, but just a moderating of the previous record pace. Read the full article,”National Permits Drop as Metro Approvals Cool in November 2016.”
More jobs mean more renters: here’s where they are
According to preliminary data from the Bureau of Labor Statistics, the year ending November 2016 saw 2.3 million jobs added to the country’s employment base, a rise of 1.6% from the prior year. Most of these jobs, not surprisingly, have been in America’s biggest cities, including New York, Dallas/Ft. Worth, Atlanta, Seattle, Washington D.C. and Los Angeles.
But that’s absolute job growth; naturally the biggest cities are likely to add the most jobs, since the base is bigger. When it comes to percentage growth, the picture is different. While placing seventh for job gains in absolute terms, Orlando came in at #1 percentage-wise, with 4.5% growth (by comparison, the job gain leader, New York, saw growth of 1.3%). Fort Lauderdale and Jacksonville were two more Florida winners, both with growth of over 3.5%. Reno, Dallas, Spokane, and the McCallen, Texas area also racked up strong job gain numbers. Salt Lake City, San Jose and Seattle filled out the top 10. Check out the full article, “Large Metros Lead Employment Gains in the Latest Data.”
Tune into our blog regularly for continuing summaries of informative, actionable research constantly being generated and compiled by MPF Research. Don’t forget that MPF can provide custom research, business intelligence and investment analytics to help you make smarter decisions!