Nonresidential starts gain ground offsetting residential weakness 

BEDFORD, MA —November 21, 2024 — Total construction starts increased 4% in October to a seasonally adjusted annual rate of $1.2 trillion, according to Dodge Construction Network. Nonresidential building starts grew 14%, nonbuilding starts moved 2% higher, while residential building starts fell 3%. On a year-to-date basis through October, total construction starts were up 3% from the first 10 months of 2023. Residential starts were up 7%, nonresidential buildings rose 1%, and nonbuilding starts were up by less than one percent.  

For the 12 months ending October 2024, total construction starts were up 1% from the 12 months ending October 2023. Residential starts were up 6% and nonresidential and nonbuilding starts were each down 1%.  

“Construction starts have yet to see the impact of falling interest rates,” said Richard Branch chief economist of Dodge Construction Network. “Several more rate cuts will be needed to start moving construction projects through the planning process to start. Clarity, though, has improved now that the election is in the rearview mirror; however, developers may wait until the full scope of President-elect Trump’s legislative agenda comes into better focus.”

Nonbuilding

Nonbuilding construction rose 2% in October to a seasonally adjusted annual rate of $314 billion. Miscellaneous nonbuilding starts jumped 38% during the month, while highway and bridge starts moved 7% higher, environmental public works starts fell 6%, and utility/gas plants lost 25%. On a year-to-date basis through October total nonbuilding starts were flat when compared to a year ago. Miscellaneous nonbuilding starts were up 19%, environmental public works starts were 9% higher, and highway and bridge starts improved by 5%, but utility/gas starts were down 21% through October.  

For the 12 months ending October 2024, total nonbuilding starts were 1% lower than the 12 months ending October 2023. Miscellaneous nonbuilding starts were 19% higher, environmental public works gained 6%, highway and bridge starts increased by 5%, but utility/gas starts were down 22%.  

The largest nonbuilding projects to break ground in October were a $1.6 billion natural gas pipeline and gathering system in and around Haynesville, Louisiana, the $1.3 billion Amtrack-Connecticut River bridge replacement in Old Saybrook, Connecticut, and the $1 billion Frederick Douglas Tunnel Southern Approach in Baltimore, Maryland.  

Nonresidential 

Nonresidential building starts climbed 14% in October to a seasonally adjusted annual rate of $466 million. Manufacturing starts rose 114% during the month due to the start of several large projects. Institutional starts rose 13% due to higher levels of activity for education and transportation. Commercial starts fell 3% despite gains in hotel and parking starts. On a year-to-date basis through October, total nonresidential starts were up 1%. Institutional starts were 16% higher, while commercial starts were down 1%, and manufacturing starts were 33% lower on a year-to-date basis through October.  

For the 12 months ending October 2024, nonresidential building starts were down 1% when compared to the previous 12 months. Manufacturing starts were down 37%, commercial starts were down 4%, and institutional starts were 17% higher for the 12 months ending October 2024.

The largest nonresidential building projects to break ground in October were the $2.2 billion Henry Ford hospital tower in Detroit, Michigan, the $1.4 billion third phase of the LG Electric Battery plant expansion for Toyota vehicles in Holland, Michigan, and the $1.1 billion second phase of the Southwest Florida Airport expansion in Fort Meyers, Florida.   

Residential 

Residential building starts fell 3% in October to a seasonally adjusted annual rate of $373 billion. Single-family starts lost 4%, while multifamily starts were down 2%. On a year-to-date basis through 10 months, total residential starts were 7% higher. Single-family starts jumped 17%, and multifamily starts were down 9% on a year-to-date basis.  

For the 12 months ending October 2024, residential starts were 6% higher than the previous 12 months. Single-family starts were 17% higher, while multifamily starts were 11% lower on a 12-month rolling sum basis.

The largest multifamily structures to break ground in October were the $384 million Federick E Samuel apartments in New York, NY, the $190 million Rivage Bal Harbour luxury condominiums in Bal Harbour, Florida, and the $190 million 1 K St. Southwest mixed-use building in Washington, D.C.  

Regionally, total construction starts in October rose in the Northeast, Midwest and South Atlantic, but fell in the West and South Central regions. 

The post Construction Starts Increase 4% in October appeared first on Dodge Construction Network.

Source: New feed