Construction Dive: Residential launch — Oct. 17

We're making a big move Monday to help exand our coverage of the industry: separating residential construction news from the Construction Dive newsletter. Going forward, Construction Dive: Residential will now be its own publication, covering all housing and homebuilding news you need to inform your business decisions. Sign up here for the new daily publication. The Construction Dive email newsletter will continue to cover the commercial, institutional and infrastructure sectors of the building industry.

Housing Market Index — Oct. 18

The National Association of Home Builders will release the NAHB/Wells Fargo Housing Market Index on Tuesday, Oct. 18. Last month, the NAHB reported the HMI surged six points in September to a score of 65. September's score marked the highest builder confidence score since October 2015.

NAHB Chief Economist Robert Dietz cited tight inventory conditions and strong demand from potential buyers as the primary drivers behind September's strong HMI score.

Will builder confidence continue to rise this month?

Local hiring requirements feature article — Oct. 18

Last week, the City of Detroit fined several Little Caesars Arena contractors approximately $500,000 for falling short of local hiring requirements on the $627.5 million project. In exchange for approximately $285 million in public subsidies, the Red Wings organization and developers had agreed that 51% of the estimated 5,500 construction positions generated by the arena would be set aside for Detroit residents. The news wasn't a surprise for everyone, as experts had previously questioned whether management would be able to meet the mandate in a time of a widespread skilled worker shortage.

The labor shortage is a primary concern for construction firms across the U.S. In such an environment, are hiring requirements on publicly funded projects — like the Red Wings arena — realistic in every area of the country? In our feature article on Tuesday, Oct. 18, we'll explore whether these types of requirements are feasible, or whether they set up contractors for major fines and penalties.

Housing starts — Oct. 19

The Commerce Department will release housing starts data for September on Wednesday, Oct. 19. Last month, the department reported that housing starts fell 5.8% in August to a seasonally adjusted annual rate of 1.142 million. Building permits — a key indicator of future construction activity — were also down 0.4% from July and down 2.3% from August 2015.

Following a strong July report, August’s housing starts figure fell short of analyst expectations. Factors contributing to August's dip in starts included limited inventory as well as a shortage of lots and labor, according to the NAHB.

Will housing starts bounce back, or will they continue to slide?

AIA billings — Oct. 19

The American Institute of Architects will release its Architectural Billings Index on Wednesday, Oct. 19. Last month, the AIA reported that the index fell to 49.7 in August — representing a decline in nonresidential design services. 

The AIA pointed to uncertainty surrounding the upcoming U.S. presidential election as a contributing factor to the low score. August’s dip to a score below 50 marked only the second time in 2016 that the ABI has fallen below that threshold.

The ABI is a significant report for the commercial construction industry, as it serves as an indicator of future construction spending with a lead time of approximately nine to 12 months. Will Wednesday's results show another month of declining design activity, or will the index rebound?

MD Purple Line feature article — Oct. 20

Maryland's planned $5.6 billion Purple Line, which would connect to portions of the Washington Metro, was on track for construction to begin this fall, but the project ground to a halt in August when a U.S. District judge ordered additional environmental reviews in response to a lawsuit filed by an environmental group and nearby residents. Opponents cited safety concerns and reduced ridership as reasons to not go forward with the project. 

If completed, the Purple Line project would be one of the largest public-private partnerships in the U.S. and only the second to include a private financing component. However, the Purple Line team said continued delays could threaten the project from going forward, as there are time factors associated with its financing arrangements. 

In our feature article on Thursday, Oct. 20, we'll offer a status update on the project to find out where it stands in the battle with environmental groups and residents, as well as how long the project can withstand delays — both logistically and financially.

Existing home sales — Oct. 20

The National Association of Realtors will release existing home sales data for September on Thursday, Oct. 20. Last month, the NAR reported existing home sales fell 0.9% between July and August to a seasonally adjusted annual rate of 5.33 million homes.

Employment gains in the overall U.S. economy aren't translating into home sales, according to the NAR, as rising home prices and tight for-sale inventory keep potential buyers from entering the market. 

Will existing home sales rebound in September?

Next installment of "The Future of the Field" series — Oct. 20

Millennials are already on the job site, and what they’re learning today will impact how they will lead the profession in the future. In our new series, "The Future of the Field," we talk with the men and women in the early years of their careers in construction about how they found the industry, what it’s like to be an emerging professional in construction today, and what they hope to achieve in their careers.

On Thursday, Oct. 20, we'll publish the second installment of our series. Stay tuned.