Growth signs abound with respect to San Francisco’s outlook. While it is competing with Houston and Seattle as the number one urban economy in the country, it has the highest average weekly wages, downtown office vacancy rates, multi-family residential permits (year over year), total residential permits and single-family home prices when compared to other major US cities. The expectation is that San Francisco will continue to do well because of energy and tech.
Total construction starts were $2 billion as of second quarter, an increase of 51% from the previous quarter. The CMD stats snapshot showed increases almost across the board, with commercial construction activity increasing nearly 71% from the first quarter ($265.5 million) to second quarter ($454.6 million); heavy engineering increasing nearly 49% from the first quarter ($131.3 million) to the second quarter ($195.7 million); retail construction, a major category of commercial work, increased 76% between the quarters as did government office construction (269 %), but office construction decreased dramatically, at nearly 98%. Institutional construction also decreased 4% from between the quarters.
We spoke with Alex Carrick, CMD chief economist, for insight into the stats generated by CMD and the impact the numbers have on San Francisco real estate.
Read more: GlobeSt.com Tech Dominates Construction Growth