For the 12 months ending April 2023, Dodge Construction Network says total construction starts were 11 percent higher than the 12 months ending April 2022.
Nonresidential and nonbuilding starts both showed gains at 34 percent and 24 percent, respectively. Residential starts, however, hindered overall growth with a 13 percent decline on a 12-month rolling basis.
“The construction sector continues to sweep its economic worries under the rug, even with inflation, unstable banking and the potential breach of the U.S. debt ceiling,” says Richard Branch, chief economist at Dodge Construction Network. “While the presence of, or lack thereof, large manufacturing projects each month has made the data more volatile, the underlying trends point to a very healthy sector.
“However, this is likely transitory,” Branch adds. “The Dodge Momentum Index, which tracks projects entering the earliest stages of planning, is falling, which should lead to weaker starts in the second half of the year – especially for the private sector.”
On a year-to-date basis through April, total construction starts were 7 percent below the first four months of 2022. Residential starts were down 27 percent, and nonresidential and nonbuilding starts grew 7 percent and 16 percent, respectively.
Nonbuilding
For the 12 months ending April 2023, Dodge Construction Network says total nonbuilding starts were 24 percent higher than the 12 months ending April 2022 – with significant gains across each sector.
Utility/gas plant starts rose 43 percent, miscellaneous nonbuilding starts were 27 percent higher, highway and bridge starts were up 20 percent, and environmental public works rose 17 percent on a 12-month rolling-sum basis.
Through April, 2023 nonbuilding starts gained 16 percent. Utility/gas plants rose 37 percent, and miscellaneous nonbuilding starts were up 36 percent. Environmental public works rose 10 percent, and highway and bridge starts were up 9 percent.
The largest nonbuilding projects to break ground in April were the $750 million Magnolia Power/Kindle Energy generating station in Plaquemine, Louisiana, the $738 million Rock Creek wind farm in Laramie, Wyoming, and the $542 million Eagle LNG export facility in Jacksonville, Florida.
Nonresidential
Between April 2022 and April 2023, Dodge Construction Network says total nonresidential building starts were 34 percent higher than the period from April 2021 through April 2022.
Manufacturing starts were 118 percent higher, institutional starts improved 22 percent and commercial starts gained 18 percent.
Through four months of 2023, total nonresidential starts were 7 percent higher than the first four months of 2022. Institutional starts gained 14 percent in that time, manufacturing starts were 4 percent higher and commercial starts were up 2 percent.
The largest nonresidential building projects to break ground in April were the $1.2 billion Hanwha Qcells solar plant manufacturing plant in Cartersville, Georgia, the $650 million Group14 battery plant in Moses Lake, Washington, and the $600 million Mutual of Omaha headquarters in Omaha, Nebraska.
Residential
For the 12 months ending April 2023, Dodge Construction Network says residential starts were 13 percent lower than the 12 months ending April 2022. Single-family starts were 25 percent lower while multifamily starts were up 14 percent on a rolling 12-month basis.
On a year-to-date basis through April 2023, total residential starts were down 27 percent. Single-family starts were 34 percent lower, and multifamily starts were down 10 percent.
The largest multifamily structures to break ground in April were the $549 million Mana’olana Place mixed-use building in Honolulu, a $500 million mixed-use building in Flushing, New York, and the $385 million 710 Broadway Apartments in Santa Monica, California.
