The first half of the year saw a slight downturn in the volume of real estate construction projects in Chicago as compared to a year earlier, but the Windy City still fared better than most major U.S. markets. According to Dodge Data Analytics, as relayed by the Chicago Tribune, commercial and multi-family construction starts for Chicago were valued at $3.8 billion. That was down less than 1% from the first half of 2016.
Gains in commercial real estate volume were offset by a decrease in the value of apartment and condominium starts. According to Dodge Data Analytics, commercial real estate volume was up 5% while multi-family construction starts dipped by 6%.
The slight drop in overall real estate construction in Chicago the first half of the year didn’t come as a surprise. Consider there was a total of $8.6 billion in new construction starts last year, which was up 37% from 2015 and the most since 2000.
Given that, most real estate experts were content with the results for the first half of the year.
“I would interpret the 1 percent drop not a a negative, but as showing the Chicago market holding steady after the enhanced rate that was reached last year,” said Dodge Chief Economist Robert Murray.
The drop-off in real estate construction starts was even more pronounced nationally. According to Dodge Data, the value of new project nationwide fell by 9% to $86.8 billion. This includes an 18% drop in multi-family starts and a 1% drop in commercial starts.
Eight of the nation’s 10 largest cities saw drops in real estate construction starts. The two outliers were San Francisco, which had a 48% increase; and Atlanta with a 19% jump.