The sounds of hammering, sawing and banging as new construction starts in many American metropolitan areas, are like hearing dollars being injected into our national economy. According to information from Dodge Data Analytics, the total for commercial and multifamily construction starts in the first half of 2016 was $80.6 billion.
And despite nine out of ten major markets posting increases, the national average shows negative growth (-5%), due to the impact of New York City. New York City’s 2015 construction starts were unusually high, causing the growth rate to be negative in 2016. So we should all revel in recent construction news that show metropolitan areas across America experiencing rising housing and construction new sales and construction permits that are all on an upward trend.
This data illustrates a trend many in the business know to be true; markets beyond the ‘salty six’ are experiencing tremendous growth, as investors look outside the major markets in search of greater returns. Growth is largely fueled by demographic changes. Income levels in Georgia are growing at a faster rate than the national average: 1.46% in Georgia, compared to 1.04% nationally. Dallas and Denver are similarly experiencing high income growth, at 2.05% and 4.83%, respectively. Population growth is also powering a higher number of construction starts; Dallas is the third fastest-growing city in America. We can’t ask for much better than that.
Cosmopolitan Capital Funding has provided capital and loan brokerage services for dozens of these projects throughout the United States. From New York to Utah, from Michigan to Massachusetts, Cosmopolitan Capital Funding is continually focused on a singular goal: closing loans. Contact us today and let Cosmopolitan Capital Funding get your projects financed.
Multifamily Construction Starts Reveal Increases
Georgia Household Income
Denver-Aurora-Broomfield Colorado Household Income
Dallas-Fort Worth-Arlington Texas Household Income
America’s Fastest Growing Cities 2016
Christopher L. Kelly is the Chief Executive Officer of Cosmopolitan Capital Funding, LLC, responsible for the operations and management of the company and reports to the Board. Mr. Kelly has specialized in mortgage banking for over 30 years. During his career he has acquired experience in effectively all aspects of the mortgage banking business.