Total Construction Numbers Remained Flat In December
According to Dodge Construction Network, total construction starts were flat in December, with a seasonally adjusted annual rate of $879.3 billion.
Residential construction starts to increase by 4% in December 2021, while nonresidential building starts to increase by 3%. Non-building starts, on the other hand, fell by 12%.
Total construction starts increased by 12% in 2021 compared to 2020.
Residential starts increased by 20%, while nonresidential building starts increased by 12%.
In 2021, nonbuilding starts were flat.
“The increase in construction starts was impressive given the many challenges the industry faced during the year.”
“Higher material prices, labor shortages, and multiple waves of COVID infections threatened to dampen the recovery,” Richard Branch, chief economist for Dodge Construction Network states.
“However, construction remained resilient and persistent throughout the year in the face of these difficult issues.”
“While these challenges will remain in 2022, the industry is well-positioned to make further gains fed by a growing pipeline of nonresidential projects waiting to break ground and the infusion of money directed towards infrastructure.”
The breakdown for construction starts is shown below:
Nonbuilding construction starts fell by 12% in December, to a seasonally adjusted annual rate of $166 billion.
The only nonbuilding sector to gain ground during the month was environmental public works, which increased by 40%.
Utilities/gas plants fell by 79%, miscellaneous nonbuilding fell by 23%, and highway and bridge starts fell by less than 1%.
Nonbuilding starts increased by 0.4 percent year on year compared to 2020.
Environmental public works increased by 21%, while utilities/gas plants increased by 6%.
Miscellaneous nonbuilding starts, on the other hand, were down 16% year on year, and highway and bridge starts were down 6%.
The $1.3 billion East Side Coastal Resiliency project in New York, NY, the $305 million Kirkman Road extension in Orlando, FL, and the $177 million first phase of the Friant-Kern Canal Middle Reach project in Lindsay, CA were the largest nonbuilding projects to break ground in December.
Nonresidential construction starts to increase 3% in December to a seasonally adjusted annual rate of $284.3 billion.
The commercial sector increased by 12% as a result of increases in retail, office, and hotel starts, while parking structures lost ground.
Institutional starts fell 17% in December, as healthcare slowed after a strong November.
Meanwhile, manufacturing starts increased significantly as a result of the start of a large project.
Nonresidential building starts increased by 12% year on year compared to 2020. Commercial starts increased by 8%, institutional starts increased by 5%, and manufacturing starts increased by 89 percent year on year.
The $700 million expansion of the Danimer Scientific manufacturing facility in Bainbridge, GA, the $650 million expansion of the Los Angeles County Museum of Art in Los Angeles, CA, and the $500 million renovations of the Fontainebleau Hotel in Las Vegas, NV were the largest nonresidential building projects to break ground in December.
Residential construction starts to increase 4% in December to a seasonally adjusted annual rate of $429.0 billion.
Multifamily starts increased by 5%, while single-family starts increased by 3%.
Residential starts were 20% higher than in 2020 for the entire year; multifamily starts were 25% higher, and single-family starts were 18% higher.
The $1.0 billion Southside Park mixed-use building in Miami, FL, the $398 million first phase of the Broadview at Purchase College senior living facility in Purchase, NY, and the $300 million 800 Broadway apartment tower in San Diego, CA were the largest multifamily structures to break ground in December.
Total construction starts to increase in the South Atlantic and Northeast regions in December but fell in the Midwest, South Central, and West regions.