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.