As Housing Improves, Nonresidential Construction Struggles

 

Multifamily construction, which faces stiff competition from the single-family market and significant obstacles to obtaining financing, decreased 4.1 percent in September from August. Compared to September 2008, construction was down 28.9 percent.

Private nonresidential construction fell 7.6 percent from September 2008 to September 2009 according to the Census Bureau’s Value of Construction Put in Place data, which are not adjusted for inflation. Construction of office space was down 25.1 percent, while commercial construction — which includes restaurants, retail space and warehouses — was down 31.6 percent.

While single-family home construction was up 2.4 percent in September from the month before, production was down 47.6 percent from September 2008. Eventually the single family sector will lead to the recovery of construction and housing sectors.

– Courtesy of NAHB