Part Four: Apartment Trends of the 1990s and Beyond
What was true in the Nineties is just as true today, that large apartment jobs can crowd out single family orders. But with the proper mix of work, a plant can achieve more steady production. Since 1993 was nearly as dire as 2010, most CMs focused on the growing single family sector.
After a partial recovery in the mid-Nineties (see chart above), apartment construction experienced 15 stagnant years. Concurrently, single family starts were on a growth trajectory. Consequently, across the nation, from 1985 to 1993, apartment starts declined from 40% to 15% of the total starts. At the end of the Nineties, apartment starts recovered to only 20% of total (see chart below). Undoubtedly, those dismal numbers prompted Trussway to purchase 6 mainly residential truss plants in Michigan and the Carolinas from Hager Industries.
Not to be overlooked is the unit size disparity between the two sectors (see chart below). However, this is mitigated by several factors. Apartments are multi-story generally built with floor trusses, while detached dwellings are usually constructed on concrete slabs in the South and West. In addition, I-joists increasingly penetrated residential floor construction, and stick-framed floors were still common.
Even if the average per unit trussed square footage neared equivalence, 5 times as many single family units were built from 1997 to 2015. And house plans became more truss-able during this period, as tract builders brought more repetitive plans to nearly every metro market.
One final building trend has dramatically impacted CMs in recent years, the rapid growth of monolithic four and five story apartment projects.
Next Month:
Monoliths of the New Millennium