Are economic trends and construction activity correlated?

A series of graphs showing the direct relationship between economic data and construction activity in 5 cities in Texas.

We have discovered a direct correlation between economic trends and construction activity in the Dallas-Fort Worth MSA. 

The correlation between construction activity and economic trends makes sense. It makes sense because construction loans are required, and given the tight margins, interest rates can break the bottom line of a new development project. 

Why is the correlation between the economy and construction essential to data science?

This correlation is essential to data science because we have little data on economic growth. The Bureau only started collecting data beyond population numbers in 2010. The new data includes income, rent, employment, etc., on a census tract level. After 2010, they began collecting data yearly. 

What data did the Census Bureau collect before 2010?

Before 2010, the Bureau collected the number of people living in a city every ten years. The problem is our economic cycles happen approximately every ten years. We need decades of demographic data to predict market behavior. 

Deepblocks is now testing if there is an actual correlation between economic trends and construction activity to predict market behavior.

Get in touch if you want the early results of our predictive exercises. 

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