Spending more for your buildings and getting less for it? You are not alone, according to the latest Construction Outlook Update from the Building Congress. In a generally rosy report on construction spending — residential building increased from a $5.3 billion value in 2008 to $5.9 billion in 2012 — the Congress noted that the money produced 33,000 units in 2008 but only 11,000 in 2012. Overall construction spending is on track to hit $31.5 billion in 2013. That is a 14 percent increase from 2012 and nominally higher than the $31.1 billion peak in 2007. By 2015, spending should hit 2007 levels after adjustment for inflation.
As the mayoral election approaches the candidates seem to be getting harder to pin down on housing and other issues. Crains tried to parse Joe Lhota and Bill de Blasio’s positions on mandatory inclusionary zoning at Tuesday’s debate with limited success. Apparently, de Blasio wants to require developers to include affordable units in areas with high demand, former manufacturing zones, or projects requiring zoning variances. Lhota would use zoning or air rights issues to incentivize affordable construction, but wouldn’t require it in otherwise as-of-right construction.
Meanwhile, on Wednesday, California Governor Jerry Brown vetoed legislation that would have permitted mandatory inclusionary zoning by local cities and towns. As former Mayor of Oakland, Brown said that requiring below market construction made development generally more difficult and didn’t deliver significantly more affordable units.
Join ABO members and other industry leaders at the Massey Knakal MultiFamily Summit November 20th and 21st. Use the code MP-25ABOGNY for a 25 percent discount at
Spending more for your buildings and getting less for it? You are not alone, according to the latest Construction Outlook Update from the Building Congress. In a generally rosy report on construction spending — residential building increased from a $5.3 billion value in 2008 to $5.9 billion in 2012 — the Congress noted that the money produced 33,000 units in 2008 but only 11,000 in 2012. Overall construction spending is on track to hit $31.5 billion in 2013. That is a 14 percent increase from 2012 and nominally higher than the $31.1 billion peak in 2007. By 2015, spending should hit 2007 levels after adjustment for inflation.
As the mayoral election approaches the candidates seem to be getting harder to pin down on housing and other issues. Crains tried to parse Joe Lhota and Bill de Blasio’s positions on mandatory inclusionary zoning at Tuesday’s debate with limited success. Apparently, de Blasio wants to require developers to include affordable units in areas with high demand, former manufacturing zones, or projects requiring zoning variances. Lhota would use zoning or air rights issues to incentivize affordable construction, but wouldn’t require it in otherwise as-of-right construction.
Meanwhile, on Wednesday, California Governor Jerry Brown vetoed legislation that would have permitted mandatory inclusionary zoning by local cities and towns. As former Mayor of Oakland, Brown said that requiring below market construction made development generally more difficult and didn’t deliver significantly more affordable units.
Join ABO members and other industry leaders at the Massey Knakal MultiFamily Summit November 20th and 21st. Use the code MP-25ABOGNY for a 25 percent discount. Click here http://mkmultifamilysummit.com/ to register.