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Construction starts rose 19% in March as concerns over the impact of the Silicon Valley Bank collapse loom

2023-04-20T13:40:00-04:00

March data from the Dodge Construction Network (DCN) has shown an increase in construction starts of 19% to what is now a three-month high despite concerns over the industry’s ties with Silicon Valley Bank following the financial institution’s controversial collapse at the beginning of the Month.

Nonresidential starts for the month rose by 33%, with residential starts up by 5%. Nonbuilding starts increased by 17% to a seasonally-adjusted rate of $263 billion, led by a 35% increase in environmental public works projects and a 16% boost in gas and utility plants. Overall year-to-date nonbuilding starts gained a total of 12% for Q1.

Graphic courtesy of Dodge Construction Network

“Construction starts activity has yet to see the impact of tightening financial conditions in the wake of the failure of Silicon Valley and Signature Banks,” Richard Branch, the chief economist for Dodge Construction Network, said in a statement. “Several large manufacturing projects are breaking ground; pushing...

The Silicon Valley Bank crash may carry huge implications for affordable housing development in Boston

2023-03-24T17:27:00-04:00

The fallout from the recent failure of the Silicon Valley Bank (SVB) is having wide-reaching effects across the country. Take Boston, for example, where advocates for multiple in-progress affordable housing developments are concerned about their future following the bank's collapse.

The Boston Globe is reporting on the underpinnings of their dilemma, which concerns the future of the bank's over $1.6 billion worth of investments in the city.

The now-dissolved SVB had purchased the previously-fledgling entity known as Boston Private Bank in 2021, leaving many of its nonprofit clients vulnerable in the wake of the failure. Boston just unveiled its plan to add some 803 units through a $67 million investment, but the 600 or more units derived from projects that were underwritten by SVB remain on precarious footing in spite of several reassurances and the recent FDIC intervention.