Construction completions fell further in the second quarter after record lows in the beginning part of this year, compounded by material and labor shortages and continuing COVID-19 woes.

New research from Moody's Analytics REIS shows that construction activity remained subdued in Q2, with all major property types posting declines in excess of 30%. Approximately 21,410 apartment units and just over 4 million square feet of office space were completed, marking the lowest apartment and office completion figures in nearly a decade. The 39,000 square feet of new retail space is the smallest amount recorded over the two decades since Moody's began tracking such figures.

One potentially welcome byproduct of the constrained supply: it likely suppressed negative market pressures across the markets, according to Moody's Senior Economist Thomas LaSalvia.