Total construction starts rose 21.1 percent in October to a seasonally adjusted annual rate of $1.53 trillion, according to Dodge Construction Network.
Nonresidential building starts increased 17.9 percent, residential starts declined 15.4 percent and nonbuilding starts expanded 59.4 percent in October.
On a year-to-date basis through October, total construction starts are up 5.9 percent from last year. Nonresidential starts are up 5.6 percent, residential starts are down 5.1 percent and nonbuilding starts are 19.8 percent higher over the same period.
“Growth in construction starts continued to be propped up by high-value megaproject activity last month,” says Sarah Martin, associate director of forecasting at Dodge Construction Network. “Specifically, 10 projects valued at $1 billion and over broke ground, largely within data center, manufacturing and LNG construction.
“Outside of these high-tech buildings, however, growth appears more moderate,” Martin adds. “In square footage terms, for example, nonresidential and residential starts declined by 4.3 percent over the month and are down 5.4 percent year to date through October.”
Nonbuilding
Nonbuilding construction starts grew 59.4 percent in October to a seasonally adjusted annual rate of $645 billion.
Utilities (up 384.5 percent month over month) drove the surge, along with environmental public works (up 18.6 percent) and miscellaneous nonbuilding (up 10.1 percent). Highway and bridge starts declined 23.7 percent in October.
On a year-to-date basis through October, nonbuilding starts are up 19.8 percent, led by gains in miscellaneous nonbuilding (up 54 percent), utilities (up 47.8 percent), highways and bridges (up 4.1 percent) and environmental public works (up 0.6 percent).
The largest nonbuilding projects to break ground in October were the $15.1 billion Calcasieu Pass LNG Export Terminal and Pipeline in Cameron, Louisiana; the $9 billion Rio Grande LNG Facility (Phase 2, Trains 4 and 5) in Brownsville, Texas; and the $5.9 billion Frederick Douglass Tunnel Improvement in Maryland.
Nonresidential
Nonresidential building starts increased 17.9 percent in October to a seasonally adjusted annual rate of $561 billion.
Commercial starts were up 19.5 percent, including growth in offices and data centers (up 45.5 percent month over month) and retail stores (up 15.1 percent).
Meanwhile, hotels (down 19.3 percent), warehouses (down 1.7 percent) and parking garages (down 46.1 percent) faced declines between September and October.
Institutional starts improved 3.7 percent, driven by gains in other institutional categories (up 49.5 percent) and offset by declines in education buildings (down 20.8 percent) and health care facilities (down 2.7 percent). Manufacturing activity remains volatile, surging 107.2 percent in October.
On a year-to-date basis through October, nonresidential starts are up 5.6 percent. Commercial and industrial starts are up 13.6 percent over that span, while institutional starts are down 2.2 percent.
The largest nonresidential building projects to break ground in October were the $7.5 billion Meta Hyperion Data Center in Richland, Louisiana; the $1.9 billion expansion to the Los Angeles Convention Center in Los Angeles; and the $1.7 billion Eli Lilly & Co. manufacturing facility in Lebanon, Indiana.
Residential
Residential building starts declined 15.4 percent in October to a seasonally adjusted annual rate of $323 billion.
Single-family starts increased 2.2 percent while multifamily starts fell a pronounced 38.5 percent.
On a year-to-date basis through October, residential starts are down 5.1 percent – with single-family starts down 12.3 percent and multifamily starts up 10.6 percent.
The largest multifamily structures to break ground in October were the $214 million Andare Residences in Fort Lauderdale, Florida; the $165 million 6 East 43rd St. office-to-residential conversion in New York; and the $132 million Jefferson Bonnie Brae Apartments in Denton, Texas.
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