Nonresidential construction fell in May, marking the fifth straight month of losses. The post-pandemic building boom has well and truly ended.
4 thoughts on “Raw data: The building boom is over”
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Cats, charts, and politics
The construction debt market is very difficult:
- high interest rates
- many lending institutions have destressed debt associated with office, and some retail, loans.
- the securitization market is difficult
Without construction debt, few new projects will advance.
I'm sorry, where is the boom in this data?
What boom? People thought there was a boom in commercial construction? Just lol? Like seriously - what??
It's pretty common knowledge that commercial real estate is in trouble, and has been for years - not that it's booming. Worries about overexposure to commercial real estate debt is one of the things that keeps people up at night when it comes to where the next big financial crisis is going to start.
On the plus side, it has resulted in a glut of wood, pushing prices down. So if you've been holding off building your new home, now's the time if you have cash.
About freaking time. Maybe now we can start to erode that 30% vacancy rate.