Dwellings site preparation

Estimates of the investment in building repair and maintenance require the removal of the investment in site preparation.

Dwellings site preparation

The National Accounts' GFCF for Dwellings and for Other Buildings and Structures include land preparation and development costs associated with the development of infrastructure that make the land usable, such as new streets and electrical power, water and sewage systems Statistics Canada.

The GFCF for site preparation nees to be removed when estimating items such as the GFCF for the repair and maintenance of dwellings.

National statistics agencies and organisations such as Euroconstruct often separate construction industry output into the output for residential buildings, non-residential buildings and civil works.

Euroconstruct which provides construction outputs for 19 European countries gives a reasonable estimate of the small adjustment that is needed for site preparation.

For the Euroconstruct countries in 2012, residential building construction output accounted for 56.6% of building construction output with 32.6% for non-residential building construction and 10.8% for "Other", namely civil engineering output.

Site preparation output is included under the “Other” Euroconstruct output (the remaining civil engineering categories are transport infrastructure, telecommunications, energy and waterworks).

Site preparation in the EU25 in 2012 was 3.3% of the construction sector's added value .

Assuming that 3.3% of the “Other” category is for site preparation, 3.3% of construction output should be removed from residential and non-residential building output if one is only interested in the investment in the built asset (i.e., without land improvement as is the case for repair and maintenance).

Removing 3.3% from construction output on a proportional basis from residential and non-residential building outputs gives an output for residential building of 54.5% of total output. Assuming GFCF is in the same proportions, the New Build Dwellings and Other Buildings and Structures GFCF without land preparation are 54.5% and 45.5% of Construction GFCF instead of 56.6% and 43.4% of Construction GFCF.

So removing site preparation and development reduces New Build Dwellings GFCF by 3.7%.

The make up of construction output for the Euroconstruct countries has in fact changed significantly in recent years. For example, in 2014 residential building construction output accounted for 46% of building construction output with 29% for non-residential building construction and 25% for "Other", namely civil engineering output PDF. For 2015, the corresponding percentages were 47.2%, 30.4% and 22.4% PDF.

Removing site preparation and development therefore reduced New Build Dwellings GFCF in the European Union by:

  • 2012: 3.7%.
  • 2014: 4.5%
  • 2015: 4.3%

For the updated 2019 survey, we assume that the annual New Build Dwellings GFCF without site preparation is reduced over the period 2010-18 for each EU Member State by 4%.

Updated February 2019