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NKY Construction Projects Increase in 2020, with Amazon Playing Significant Role

Construction projects are up in Northern Kentucky, the Building Industry Association of Northern Kentucky reported on Monday.

Single-family home permits rose 20 percent year over year on average, with a 35 percent increase in Boone County.

BIANKY said Monday that multifamily construction has slowed, citing the pandemic.

"Residential remodeling, a part of our industry that took a longer pause during the onset of the pandemic is now back and exceeding last year’s volume by 5%," said Brian Miller, executive vice president of the Building Industry Association of Northern Kentucky. "What is more noticeable is a 50% increase in permitted residential remodeling activity over a two-year period. We mention permitted activity as many smaller remodel work or do-it-yourself work goes unpermitted and is not reflected in our data”.

New commercial/industrial investment, on the surface, is 70% greater than last year, largely due to the Amazon Prime International Air Hub, BIANKY said in a news release.

Without Amazon, local construction projects would be down 40%.

“Commercial/Industrial reinvestment is up 51% over the same period in 2019," Miller said. "Amazon has a significant share of this increase as well and if not included, we would have no increase over reinvestment activity in our region.”

Total commercial/industrial investment in Northern Kentucky increased 63% in the first three quarters of 2020 over 2019.

"Roughly half of the commercial/industrial construction activity is happening on the Air Hub site, while another 15% are likely tied to the fact that the Air Hub is here,” Miller said.

This data, when compared to nationwide data, is particularly good, the news release said. Residential single-family homes are far outpacing the nation as a whole, even as other regions of the country are experiencing increases. Residential remodeling is performing in accordance with the national trend.

"Our region's commercial/industrial activity is a direct opposite of what is happening across the country and that is all tied back to or related to the Amazon Prime International Air Hub,” Miller said.

-Staff report

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