Construction News: 5 Boom Cities of 2016

U.S. construction news is again positive for 2016. According to Dodge Data & Analytics, the industry will grow by six percent over 2015, up to $712 billion.

Here are five cities where we expect good construction news to continue in 2016.

Houston Construction News

Why the good construction news?

• The upswing in healthcare projects that has been happening since 2013 continues with almost $5 billion in development underway or planned.
• Job growth during the past few years created a population influx, which has led to greater demand for housing and retail space.
• Retail inventory is 94% occupied and only about 25% of the 2.6 million square feet under construction is available for rent.

Popular projects

• San Jacinto Mall: The 35-year-old property will be remodeled into an open-air shopping center.
• TMC3: Texas Medical Center will build a new $1.5 billion 30-acre research campus.
• Natural gas liquids pipeline: Enterprise Product Partners LP will expand the existing pipeline.

Average wage: $43,290

Dallas/Fort Worth Construction News

Why the good construction news?

• The business operations and infrastructure trend continues with multiple new project starts for office buildings, data centers, and road improvements.
• Economic growth is expected to be strong for 2016 (1 percent).
• The population surge continues due to solid economic growth and low inflation. A tight housing inventory drives an increase in residential housing construction.

Popular projects

• ViaWest data center: Construction on this 156,000-square-foot facility is expected to be completed in Q4 2016.
• Facebook data center: Building a $1-billion development entitles you to name your own address.
• 1900 Pearl: This 25-story, 260,00-square-foot office tower will be the new gateway to the Dallas Arts District.

Average wage: $37,520

New York Metro Area Construction News

Why the good construction news?

• New York needs more housing, and there’s nowhere to go but up. In 2014, there were $9.6 billion in multifamily housing starts. With four times the normal activity on multifamily construction and a 255% increase in annualized homebuilding permit activity in 2015, the multifamily housing trend should continue to be strong in 2016.
• Office construction is escalating. The New York Building Congress expects 4 million square feet of office construction in 2016.
• The New York Building Congress anticipates government construction spending to reach $14.5 billion in 2016 and $16.3 billion in 2017.

Popular projects

• Second Avenue subway: The first major expansion of the subway system in 50 years will cost $4.5 billion.
• 30 Hudson Yards: The 2.6-million-square-foot tower will be the second-tallest office building in New York.
• 1 Manhattan West: Another office tower, this 67-story skyscraper is LEED Gold certified.

Average wage: $65,720

Chicago Construction News

Why the good construction news?

• Dodge Data & Analytics forecasts a 7 percent rise in construction starts in 2016.
• Strong apartment and hotel markets are leading the trend.
• Tollway revenue is restricted to use by only the Illinois State Toll Highway Authority, essentially protecting the revenue from being allocated to other public works projects.

Popular projects

• Lucas Museum of Narrative Art: George Lucas plans a $400 million development on the shores of Lake Michigan.
• Barak Obama Presidential Center: This project headed up by the Obama Foundation is in its early stages, having just submitted an RFP for architects.
• New tollway: Part of the record $1.4 billion 2016 spending budget will be used to build a new tollway around the western border of O’Hare International Airport.

Average wage: $66,310

Denver Construction News

Why the good construction news?

• High demand and tight inventory continue to drive residential construction.
• Denver is consistently ranked as one of the fastest-growing areas in the nation.
• Despite low oil prices, energy industry projects are moving forward in the Denver area.

Popular projects

• Gaylord Rockies Resort and Convention Center: Slotted for construction in the suburb of Aurora, this project will employ about 10,000 workers.
• Niobrara Connector: This rail transfer facility handles the storage and transport of crude oil produced in the Denver-Julesburg Basin.
• 1144 Fifteenth: This 40-story office building will be the first of its size built in Denver in 30 years.

Average wage: $45,020

Other areas where the construction news for 2016 looks positive include San Francisco; Phoenix; Washington, D.C.; Seattle; and Boston. While growth in Houston, Dallas and other Texas regions continues, oil price volatility may cause a slowdown.

One challenge that all of these areas face is that there is more work than there are workers to do it. An aging workforce is not being replenished fast enough to keep up with retirement. The result: a construction labor shortage.