In today’s construction news, read about in the US, runaway rent increases have decreased as a result of the post-pandemic construction boom providing a much-needed supply of dwellings. Meanwhile, the labor market may not be as robust as previously thought, per the National Association of Home Builders (NAHB) and the US Bureau of Labor Statistics’ (BLS) preliminary estimate of the upcoming annual benchmark revision to the establishment survey employment series. On the other hand, global hotel construction activity has been growing steadily, reaching an all-time high in the second quarter, led by the United States and China. The most recent worldwide construction pipeline from lodging Econometrics. Finally, drivers can anticipate that the westbound Collector-Distributor (CD) roadways will close for sign work, according to the Arizona Department of Transportation.
Rents are Falling Due to a Development Boom in the US
Original Source: A US construction boom is sending rents lower — but there’s a narrow window to score a deal, Redfin says
The post-pandemic construction boom has provided much-needed apartments, reducing US rent rises.
Last month, Redfin reported year-over-year rent drops for all apartment sizes, a trend last seen in June 2020.
The real estate listings site reported that median asking rentals fell 0.1% for one-bedroom apartments, 0.3% for two-bedroom apartments, and 2.4% for three-bedroom apartments in July.
“Rents have recently steadied — or even dropped slightly — due to the sheer number of apartments built over the past two years,” Redfin senior economist Sheharyar Bokhari reported.
All bedroom categories are down at least $50 from their two-year highs.
Housing development soared after the pandemic as developers raced to fill the country’s supply need.
Studio rent declined 20.9% in the first quarter year over year due to a concentration on smaller apartments, Redfin stated.
Bokhari noted that tenants shouldn’t expect the price drop to persist forever:
“Construction is slowing down and prices will eventually start rising again, but now is still a good time for renters to find a deal, especially families looking for an apartment with at least three bedrooms.”
Redfin reported about 30% fewer apartment development approvals since the epidemic last month. Bohkari said owners may hike rents again in a year or two when new inventory cools.
Rent declines vary by region.
As construction increased in Florida and Texas, Redfin found that they are leading the way. Rent dropped 16.9% in Austin, Texas and 14.3% in Jacksonville, Florida.
Rents rose in East Coast and Midwest metros. Rent in Virginia Beach rose 13.7% year-over-year, the most.
The national vacancy rate is at its highest since 2021, and landlords are looking for solutions.
One-third of property managers provide promotions like free parking to attract tenants, according to Zillow.
Redfin reported that the national median asking rent gained 0.4% year-to-year last month when combining all property types, despite all bedroom counts falling.
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The BLS Says the US Construction Labor Market is Weaker Than Expected
Original Source: BLS Indicates US Construction Labor Market Not as Strong as Originally Estimated
The US Bureau of Labor Statistics (BLS) preliminary estimate of the upcoming annual benchmark revision to the establishment survey employment series and NAHB analysis suggest the labor market may be weaker than expected.
The Current Employment Statistics (CES) survey employment estimates are benchmarked to full population counts of employment for March each year, NAHB says. It enhances the CES all-employee series and detects employment data modifications early.
The preliminary BLS benchmark revision estimate for the 12-month period from April 2023 to March was 818,000 fewer payroll jobs, 0.5% less than previously predicted. The highest downward revision since March 2009 (a 902,000 decline) would occur if the final benchmark revision is close to the preliminary one.
Construction employment was revised down by 45,000, 0.6% from 8.2 million. The 12-month average monthly job gain for the industry was reduced down 17% to 18,000 through March.
Construction employment was overestimated for three years during the 2008 crisis and pandemic. This is the largest downward change to the construction benchmark since March 2010.
NAHB emphasizes that the preliminary benchmark estimate will not update employment data. All CES series data will be updated in February 2025 with the final benchmark revision.
U.S. and China are Driving the World’s Hotel Building Pipeline to a Record High
Original Source: U.S., China lead global hotel construction pipeline to all-time high
The U.S. and China led global hotel building growth, which reached an all-time high in the second quarter. The global building pipeline rose 6% by projects and 4% by rooms to 15,453 projects with 2,395,726 rooms, according to Lodging Econometrics’ latest study.
There are 6,265 projects/1,115,989 rooms under development worldwide, up 2% and 1% YOY. Projects and rooms anticipated to start development in 12 months rose 8%. YOU to end Q2 with 3,972 projects/545,764 rooms. Early-stage projects increased 10% and rooms 6% YOY to 5,216 projects/733,973 rooms.
65% of global pipeline projects are upper midscale, upmarket, or midscale chain sizes. Upper midscale has the most projects (29%) with a record 4,540 projects and 585,688 rooms. Midscale hotel projects climbed 5% YOY to 1,868 projects/186,592 rooms, while upscale projects and rooms reached record highs at 3,688 projects/634,050 rooms.
Luxury developments and room counts reached record highs of 1,066 projects/214,270 rooms, up 13% and 14%, respectively.
Highest-volume project countries:
U.S.: 6,095 projects/713,151 rooms
China, 3,815 projects/699,786 rooms
610 projects/75,280 rooms in India
Canada: 322 projects/40,297 rooms
Saudi: 320 projects/79,756 rooms
The U.S. accounts for 39% of the worldwide pipeline, while China accounts for 25%, concentrating 64% of it in two countries.
Largest pipeline cities:
Dallas: 22,392 rooms/189 projects
Atlanta: 159 projects/18,522 rooms
Chinese Chengdu: 147 projects/26,951 rooms
Shanghai: 126 projects/24,340 rooms
Inland Empire, CA: 124 projects/12,569 rooms
The first six months of the year saw 948 new hotels/135,579 rooms open worldwide, with 1,586 more expected by the end of the year.
This year, 2,534 hotels with 372,686 rooms are expected, the research added. Hotel openings will rise to 2,756 hotels/429,120 rooms in 2025 as global pipeline projects reach an all-time high. Expect 2,812 new hotels/430,355 rooms worldwide in 2026.
Narrows I-10 Construction Between US-60 and 40th St
Original Source: Construction Narrows I-10 Between US-60 and 40th St
The Arizona Department of Transportation tells drivers to expect westbound CD traffic closures for sign construction. Westbound Interstate 10 between US 60 and 40th Street will have three lanes from 10:00 pm Friday, August 23, to 4:00 am Monday, August 26.
The following ramps will be closed simultaneously: westbound I-10 to northbound SR 143.
Broadway Road and 40th Street westbound I-10 off-ramps.
Westbound I-10 on-ramp at Baseline Road.
Westbound I-10 to 24th Street or Buckeye Road will take drivers to Phoenix Sky Harbor International Airport. Westbound US 60 drivers to Phoenix Sky Harbor International Airport should take northbound Loop 101 (Price Freeway) to westbound Loop 202 (Red Mountain Freeway) and enter at 44th Street.
When state highways are closed, the Arizona Department of Transportation recommends drivers to use detours. Weather and other unanticipated events can affect schedules. ADOT advises motorists to download the free Interstate 10 Broadway Curve Improvement Project mobile app, The Curve, or check the project website’s notifications section before traveling for the latest information.
Summary of today’s construction news
To sum it up, according to Redfin, apartment rents decreased for every number of bedrooms for the first time since June 2020. Though building is slowing down and property managers will soon start raising rents again, it was noted that heavy construction has helped stabilize the rental market.
Meanwhile, the preliminary benchmark estimate will not be released together with the current employment figures, according to NAHB. When the final benchmark revision is released in February 2025, all CES series data will be updated.
On the other hand, according to the research, 2,534 new hotels with 372,686 rooms are expected to open this year. With 2,756 new hotels with 4,29,120 rooms expected to debut in 2025, new hotel openings will continue to climb, with pipeline projects around the world at an all-time high. Globally, 2,812 new hotels with 430,355 rooms are anticipated to open in 2026.
Finally, when state highways are closed, the Arizona Department of Transportation suggests that drivers take the specified routes. Plans can alter in response to inclement weather and other unanticipated circumstances. ADOT advises drivers to download The Curve, a free mobile app for the Interstate 10 Broadway Curve Improvement Project, or check the notifications section of the project website before heading out.
