Total construction starts are on a decline — down 19% month over month in June to a seasonally adjusted annual rate of $1 trillion, according to a new report from Dodge Construction Network.
However, residential construction starts are moving against the grain, up 9% from the previous month to a seasonally adjusted annual rate of $396 billion. Residential starts are also up 14% over the last six months, largely driven by single-family starts — up 25% YTD — while multifamily starts fell 6%.
The construction market remains sluggish as high interest rates continue to reverberate through the sector, Richard Branch, chief economist of Dodge Construction Network, said in the report.
“But moribund starts activity means that these projects are piling up like water behind a dam,” he said. “Lower rates in 2024 will allow these projects to start flowing again, resulting in a quicker pace of activity toward year end.”
Despite the dip in multifamily starts, several high-profile projects have recently got off the ground. Here are the three largest multifamily projects that started construction in June, according to pricing information provided by Dodge Data & Analytics, making up a combined $2 billion in total value:
Bentley Residences
Value: $1 billion
Location: Sunny Isles Beach, Florida
Developer: Dezer Development
Units: 216
Estimated completion: 2027
At 61 stories, the English luxury automaker’s branded condo tower will be the tallest residential building on any U.S. beachfront, according to information posted on Bentley’s website. The property will offer a host of car-focused features, including a car elevator and private sky garages, which will allow residents to drive directly to their homes.
Private pools, Gaggenau appliances, a movie theater, a cigar lounge, beachside amenities and a salon and spa are among the property’s amenities. Pricing starts at $5.6 million, according to a Bentley press release.
Cipriani Residences
Value: $600 million
Location: Miami
Developer: Mast Capital
Units: 397
Estimated completion: 2027
Luxury Italian hotelier and restaurateur Cipriani is underway on its first U.S. residences, developed by Mast Capital and designed by Arquitectonica, both based in Miami. Located in the Brickell neighborhood, the 80-story tower will offer both in-home and private dining for residents, as well as a 24-hour catering service, according to information on the Cipriani website.
The building’s curved facade is meant to evoke the look of the Italian Riviera, according to Cipriani. In addition to dining, the property will offer walk-in closets in master bedrooms, Wolf Sub-Zero appliances, smart home technology, two pools with food and beverage service, a library, a screening room, a salon, a spa and a four-story wellness center and lounge.
The property’s residence tiers comprise 323 standard condos and 74 signature collection units, including six penthouses. Pricing starts at $2.1 million, according to Cipriani.
The Market Place
Value: $434 million
Location: Irvine, California
Developer: The Irvine Co.
Units: 1,261
Estimated completion: 2025 (First apartment and retail deliveries)
The Irvine Co. is adding a new residential section to The Market Place, the developer’s outdoor shopping center and master-planned community, which opened in 1988 and comprises over 135 retail stores, 1.4 million square feet of retail space and 14 existing apartment properties, according to the developer’s website.
The new housing will replace approximately 200,000 square feet of retail space, including the former sites of a Hobby Lobby and a Barnes & Noble, according to the Orange County Business Journal. Twenty percent of the units at the new development will be reserved for affordable housing.
The redevelopment plan includes a community lawn and plaza, expected to open in late summer 2025, according to The Irvine Co.
Correction: The property under development by The Irvine Co. is known as The Market Place, and its value is $434 million, according to Dodge. Twenty percent of the units will be reserved for affordable housing. All project value information was provided by Dodge Data & Analytics.
