Summer is here and the stories keep coming for the real estate and construction industries. Here’s the scoop from the past month:
Billions in buildings – Nashville construction permits break record
Reaching a lofty new high, Metro Nashville’s Codes Department approved permits for $4.21 billion of commercial and residential construction in the government’s most recent fiscal year, which ended June 30. That volume cruises past the city’s previous record of $3.7 billion in fiscal year 2015-16, during which officials issued 1,350 more building permits than were issued last year – which points out how many huge projects are now being built (such as the three massive mixed use developments our client Turner Construction is building in downtown and midtown – Gulch Union, 1200 Broadway and Broadwest, as well as client Southeast Venture’s ground-breaking mixed use development, Silo Bend).
Metro finalizes 10-year plan for 10,000 new affordable housing units
The Tennessean reported that on June 28 Metro officials have finalized the details of a $25 million investment that will fund 107 low-income apartments and townhomes and 33 market rate units at two Metropolitan Development and Housing Agency communities.
High-end hotel planned for Music Row
A boutique hotel is coming to a site at 1001 16th Ave South in Nashville. A Dallas-based architect design firm and new co-owners hail from Chicago and local firm M Cubed Developments, based in Nashville. Read more about plans for the .7-acre site here.
Amazon selling homes for less than $20,000
The tiny home trend is now more easily accessible, thanks to the biggest online retailer taking on inventory. Shoppers can point and click and find a modest selection of pre-fab homes. There’s even one 172 square foot cabin that claims to be able to be built in less than eight hours. Not matter what home you land on, yes, you also get free shipping.
Softwood lumber demand decreases for second month in a row
Canadian and US lumber suppliers are seeing a downward trend in demand, even with summer home building season upon us. Even more troubling, that’s down more than 50 percent compared to one year ago.
Still waiting on infrastructure improvements
Despite promises for more than $1 trillion in infrastructure spending by President Trump two years ago, investors and developers are still waiting on a bill to pass. Aside from a strong multiplier effect that infrastructure projects can have on the economy, there is a correlation between infrastructure investment and incremental real estate values. So far, Congress so far has only allocated about $20 billion—with dollars primarily flowing to existing projects.
Construction industry learning lessons from the manufacturing industry
Long a staple of many manufacturing companies, lean practices are now being successfully implemented by construction firms. Lean Construction Institute (LCI) and International Group for Lean Construction have interpreted and catered the streamlining processes way of lean thinking to derive more value from every expenditure of resources on and off the jobsite. One example of how it can work is featured in Southland Industries’ recent webinar which outlines the tips for reducing waste, reworks and delays.