Orlando, with 26.42 building permits pulled per 1,000 non-agricultural jobs, slipped to sixth place from the No. 2 position last year. The Charlotte-Gastonia-Rock Hill hub, ranked fifth in 2000, pulled 28.91 permits per 1,000. Las Vegas maintained its hold as the leader with 36.78 permits pulled per 1,000.
The rankings are called the index of private construction intensity. The index relates the number of authorized permits to the payroll jobs base in each metro area. The permits are for single and multifamily dwellings
"This procedure provides both a locally oriented measure of construction vigor and serves as a leading indicator of confidence by local building contractors in the economic strength of the region," Dr. David F. Scott Jr., executive director of the Dr. Phillips Institute for the Study of American Business Activity, and Phillips-Schenck, chairholder at the University of Central Florida, tells GlobeSt.com. "A higher index suggests greater vigor and confidence."
Orlando ranked third in 1998. "The local pullback in construction intensity has been magnified over 2001's initial two months," Scott says. "Importantly, Orlando's index contracted by a harsh 19.7% across the year 2000 when compared to 1999."
The Orlando vs. Las Vegas gap "moved in favor of Las Vegas as its index contracted by a lesser 7.8% relative to one year earlier," Scott says.
More embarrassing to the area's construction reputation, the university's preliminary data for the first two months of this year put Orlando's index further down at 10th place among the top 20 markets, with Las Vegas still in the first-place position. The greater Raleigh, NC area shot up to the second spot.
The seven most vigorous construction markets to date are Las Vegas, Charlotte-Gastonia-Rock Hill, Atlanta, Phoenix-Mesa, Raleigh-Durham-Chapel Hill, Orlando and Austin-San Marcos.
The top 20 markets ranked by UCF, with building permits per 1,000 non-farm workers, are Las Vegas, 36.78; Charlotte-Gastonia-Rock Hill, NC, 28.91; Atlanta, 28.67; Phoenix-Mesa, AR, 28; Raleigh-Durham-Chapel Hill, NC, 27.72; Orlando, 26.42; Austin-San Marcos, 25.27; Denver, 21.85; Sacramento, 21.83; Riverside-San Bernardino, CA, 21.52.
Also: Jacksonville, FL, 18.61; Indianapolis, 17.25; Fort Lauderdale-Hollywood, FL, 16.97; Memphis, TN, 16.88; Columbus, OH, 16.36; Fort Worth-Arlington, TX, 15.97; Dallas, TX, 15.89; Nashville, TN, 15.69; Tampa-St. Petersburg, FL, 1545; and Houston, TX, 14.56.
The UCF index covers 60 metropolitan statistical areas having nonfarm payroll work forces of at least 500,000 jobs.
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