Despite the industry’s recovery in 2021, following stalled projects and uncertainties in 2020, commercial and multifamily construction starts still remain below 2019 levels. The report notes that, in fact, larger metro areas have struggled to gain momentum as demand for construction is shifting away from denser urban areas. 

Commercial and multifamily starts both nationally and in the top 20 metro areas in 2021, overall, were below 2019 levels. In the top 10 metro areas, starts were 9% below their 2019 level, however in the metro areas ranked 11–20, starts were up 5% from 2019. This indicates that smaller, less dense metropolitan areas are becoming more popular. 

The New York metropolitan area tops the list for commercial and multifamily starts in 2021 at $26.8 billion, which is an increase of 14% from 2020. This is followed by the Dallas metropolitan area, which saw $10.7 billion for the year, a 45% gain from 2020. In third was the Miami metro area, with commercial and multifamily starts totaling $8.4 billion, a dramatic 65% increase over 2020. 

The top 10 metropolitan areas accounted for 39% of all commercial and multifamily starts in the U.S., with the remaining 10 areas accounting for 18%. Both of these figures are unchanged from their 2020 share. 

“Commercial and multifamily construction starts staged a strong rebound in 2021, despite the continued impact of the COVID-19 pandemic,” said Chief Economist for Dodge Construction Network, Richard Branch. “This recovery, however, has been fairly uneven with the focus on warehouse and multifamily activity, while office and hotel construction remain more constrained by the pandemic. Looking ahead, 2022 should bring with it a more even recovery spread across most commercial project types, while multifamily will continue to benefit from the high cost of single-family homes. While positivity abounds for the year ahead, be aware that high material prices and a shortage of skilled labor will prove to be limiting factors and will restrain overall growth.”