Commercial and multifamily starts declined in five of the top 10 metro areas in H1 2023

New data from Dodge Construction Network finds the value of commercial and multifamily construction starts across the top 10 metropolitan areas in the United States fell 10 percent in first half 2023, relative to the same period in 2022. Nationally, commercial and multifamily construction starts fell 14 percent on a year-to-date basis through June.

Commercial and multifamily construction has suffered thus far into 2023 as tighter lending standards, higher interest rates, slowing demand and societal changes, such as continued remote work, affect the sector.

In first half 2023, the New York metropolitan area was the top market for commercial and multifamily starts at $10.8 billion, a 31 percent decrease from the first six months of 2022. In second was the Dallas metro area, totaling $6.7 billion in the first half of 2023, a 17 percent decline. The Atlanta metro area ranked third with $5.4 billion in starts — an 18 percent gain over 2022 on a year-to-date basis.