Pattern Links High-Rise Construction to Economic Health
July 31, 2018
As the economy fluctuates, so does the construction of high-rises in major metro areas. According to Dodge Data & Analytics, a pattern of high-rise construction, both residential and nonresidential, has emerged over the past decade, showing a direct link between economic health and high-rise construction.
The report, released on July 31, classified high-rises as buildings more than 10 stories tall and super high-rises as those over 20 stories.
During the early days of the recession, the number of high-rises built dropped from just under 300 in 2008 to less than 100 in 2009. Over the proceeding years, projects over 10 stories steadily increased through 2016, mimicking the economic recovery before a slight dip in 2017.
“Looking more closely at the purely nonresidential building types, the pattern is repeated, but it’s important to note that even in the strongest periods, nationally, there are under 200 projects over 10 stories high started in any year,” the report states. “Additionally, the very super high-rise building category is dominated by just three building categories,” which included apartments at 500, hotels and motels at just under 100 and office and bank buildings in the mid-50s.
The New York metro area had an astounding number of high-rises over 10 stories built between 2013 and 2017, exceeding 600—that’s at least 450 projects more than the second-largest metro area, being Miami. The DMV (District-Maryland-Virginia) area ranked third with about 130 projects over the four-year span.
—Andrew Michaels, editorial associate