January 31, 2014

Area construction topped $2.9 billion last year

A report from McGraw Hill Construction finds overall construction up 9 percent in 2013 from the previous year, led by strong residential activity.

Construction activity in the Kansas City area topped $2.9 billion last year, up 9 percent from 2012, thanks to the rebounding residential market.

McGraw Hill Construction, a national trade publication, said a strong 32 percent gain in residential activity helped boost last year’s total despite an 11 percent decline in non-residential work. There was $1.65 billion in residential construction and $1.3 billion in non-residential construction.

Residential work is defined as single-family and multifamily housing.

The McGraw Hill numbers were supported by a December report from the Home Builders Association of Greater Kansas City. The association said single-family permits surpassed 4,000 last year for the first time since 2007, ending the year at 4,087 permits, up 24 percent from 2012. On the multifamily front, permits for 2,879 apartments and condos were issued in 2013, up 62.2 percent from the previous year.

Non-residential work is described by McGraw Hill as office, retail, hotel, warehouse, government and other buildings.

The McGraw Hill report found that area construction fell in December from the same month a year ago. For the month, there was $138.1 million in non-residential contracts, down 21 percent from December 2012, and $100.7 million in residential work, an 11 percent decrease.

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