Nonresidential Building Retreats in NovemberDecember 23rd, 2015 | Category: Industry News
New construction starts fell 5 percent in November, according to Dodge Data & Analytics. Starts for the month recorded a seasonally adjusted annual rate of $563.3 billion.
During the first 11 months of 2015, total construction starts on an unadjusted basis were $597.9 billion, up 8 percent from the same period a year ago.
The November statistics lowered the Dodge Index to 119, compared to 125 in October.
Nonresidential building in November dropped 13 percent to $175.4 billion (annual rate), following its 33-percent rebound in October. The commercial building categories as a group have caused volatility over the past two months, sliding 29 percent in November after soaring 53 percent in October.
Office construction plunged 43 percent in November after being lifted in October by the start of two very large data centers, valued at $570 million and $300 million respectively, and several large office buildings. The major office projects that were reported as November starts were generally smaller in scale than what took place in October, according to Dodge.
Store construction in November fell 30 percent, while hotel construction in November stayed even with its October pace.
The institutional building group in November receded 1 percent after registering 23-percent growth in October. Weaker activity was reported for amusement-related work, down 12 percent. November declines were also reported for transportation terminals, down 19 percent; and religious buildings, down 4 percent. The educational building category in November rose 3 percent, showing further growth on top of the 21-percent increase reported in October.
Through the first 11 months of 2015, nonresidential building was down 8 percent relative to the same period a year ago. The commercial building group was flat year-to-date, with gains registered by hotels, up 14 percent; and stores, up 1 percent; while modest declines were reported for office buildings, down 4 percent.
The institutional building group slipped 4 percent year-to-date, with decreased activity reported for public buildings, down 1 percent; transportation terminals, down 10 percent; healthcare facilities, down 11 percent; and amusement-related work, down 12 percent. The educational building category, which is the largest nonresidential building structure type by dollar volume, advanced 2 percent in the first 11 months of 2015, while the small religious building category managed a 6-percent increase relative to a depressed 2014.
Residential building in November decreased 2 percent to $257.4 billion (annual rate). Multifamily housing retreated 6 percent after soaring 43 percent in October. There were 6 multifamily projects valued at $100 million or more that reached groundbreaking in November, fewer than the 11 such projects that were reported as construction starts in October, but still a healthy amount.
For the January-November period of 2015, residential building was up 14 percent compared to last year, a stronger rate of increase than the 3-percent gain reported for the full year 2014. Multifamily housing climbed 17 percent year-to-date, continuing the upward trend that’s been underway since the first year of recovery back in 2010.