Construction Backlog Lessens As New Work Slows

How many signs does it take to know that the commercial real estate industry is slowing? For those optimists out there, another important one has emerged, from a highly reliable source. The Associated Builders and Contractors. The trade association with more than 22,000 commercial contractors and construction-related firms has reported that its Construction Backlog indicator declined to 8.7 months last month, according to a member survey conducted between March 20 and April 3 of this year.

The backlog, which slipped in March, is now at its lowest level since last August, and down on a monthly basis in every region except for the South. That area continues to be associated with elevated levels of current and future construction activity as people migrate there for its warm weather, good job market and in some cases its affordability.