Construction Contracts Up

New England - Seeing more cement and lumber trucks on the road lately? It's not your imagination. It's no secret that residential permits are up in New England as compared with the early 1990s. But what about non-residential property?

Contracts are on the rise in this category as well. In the non-residential area, more construction contracts are signed today in New England than at any other time during the past seven years.

According to the Federal Reserve Bank of Boston, the non-residential construction contract index is at 288. This contrasts to a low of 172 during 1991. So contracts are up from that period by more than 60%.

[Graphical Non-Residential Construction Index Chart 1990-96]

MA leads the way with contracts up 100% from a 1991 low. NH is second, up 80% from its 1993 low. And ME is up 68% from its lowest point during 1990.

Despite the dramatic increases, however, contract levels have not returned to their mid to late 1980 levels.

[Steve's Signature]
Stephen Traub, ASA
Publisher, PVM ^SM

The author, Stephen Traub, ASA, is Chief Commercial Appraiser for Property Valuation Advisors, Newburyport, MA. He is a certified general appraiser in NH, ME and MA. He can be reached at (508) 462-4347 or:
by e-mail: straub@shore.net