As Residential Construction Booms, Nonresidential Suffers

The residential construction industry has rebounded greatly since the beginning of the pandemic, but the same cannot be said for nonresidential construction. Commercial construction jobs account for 60% of all industry jobs while residential accounts for 40%. Many commercial and retail businesses have continued to struggle as Americans stay indoors. Ordering online has continued on though, so there is a glimmer of hope in the need for distribution centers, says The New York Times. But from June to August, residential construction employment increased by 2.1% while nonresidential employment decreased by 0.4%.

Construction employment was 7.2 million in August, the latest month for which figures from the Bureau of Labor Statistics are available. That was a decline of 425,000 from February.

The National Association of Realtors reported Wednesday that its index of pending home sales rose 8.8 percent in August, reaching a record high, as rock-bottom mortgage rates and a desire to escape crowded cities for suburban and exurban areas fed demand.

Read More