Blog Post

Strong First Quarter Results for Utah’s Construction Sector

By: James Wood

The latest data show strong first quarter results for Utah’s construction sector. The value of construction in Utah in the first quarter of 2016 was $1.87 billion, only two percent below the all-time high of $1.91 billion (inflation adjusted dollars) in 2007 (See Table 1). The full report for the first quarter of 2016 can be viewed here.

Table 1

Permit Authorized Construction in Utah (Million 2016 dollars)

Strong First Quarter Results for Utah’s Construction Sector

Utah’s nonresidential construction sector is off to a great start in 2016. The value of nonresidential construction in the first quarter of 2016 actually exceeded the value of residential construction; $806.4 million to $801.8 million. This rarely happens.

A closer look at the strong first quarter numbers shows that the nonresidential sector benefitted from the $214 million expansion of the Utah Valley Regional Medical Center and $59 million in new construction for student housing at BYU.  These two projects led to Provo’s record first quarter construction total of $422 million (including residential construction), which far outdistanced construction activity in any other city.

The number of building permits issued for single family units in the first quarter increased by seven