So far this year, residential construction starts activity in the Chicago-Naperville-Joliet metro is up noticeably on a year-over-year basis.
During the first two months of this year, residential construction starts in the metro totaled more than $606 million, up from $312.5 million during the same span last year, according to data from Dodge Data & Analytics.
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The 94 percent annual rise in residential starts can be attributed to the commencement of several rental and condo towers. According to the U.S. Census Bureau, of the 2,646 residential building permits pulled in the Chicago metro spanning January and February 1,793 were for units within buildings containing five or more units.
Additionally, 781 units were for single-family homes. MetroStudy expects 6,200 to 6,300 single-family housing starts this year in the 12-county Chicagoland region, which would equate to 3 or 4 percent year-over-year growth. The source reports that roughly 35 percent of these starts will be priced under $250,000.
In February alone all residential construction starts totaled $195.5 million, a 13-percent year-over-year rise. During the previous month two high-rise rental projects in the metro accounted for a combined $237 million in starts volume.
Notable upcoming towers in Chicago
In the coming months the metro is slated to see some notable residential groundbreakings. Chicago-based Magellan Development Group and Dalian Wanda Group of China are slated to start a 93-story, mixed-use tower that will feature 405 condos on top of a 12-floor hotel. Once completed the tower will be the third tallest in Chicago.
The first phase of the Riverline development, a five-building, high-rise project, is slated to start this year as crews are currently readying the site for construction.
Overall River North, West Loop, South Loop and Fulton Market will all see several new residential towers break ground this year.
These towers will include a mix of sub 100-unit condo projects and 300-unit-plus rental developments. Developers with upcoming starts include JFJ Development, LG Development, Related Midwest and Wood Partners.
According to Chicago Curbed there are 40 high-rises currently under construction in the city of Chicago, primarily rental and condo projects.
Chicago’s non-residential construction
While the residential sector entered spring on a positive note, construction starts activity within Chicago’s non-residential sector was down.
During the first two months of this year there were $331.7 million of non-residential construction starts, a significant decline from the same time last year when construction starts totaled $1.154 billion. Hotel construction appears to be driving the non-residential sector.
