Total Construction Starts Increase in FebruaryMarch 23rd, 2022 | Category: Industry News
Total construction starts rose 9% in February to a seasonally adjusted annual rate of $1.013 trillion, according to Dodge Construction Network. Nonresidential building starts swelled 32% due to the start of three large manufacturing facilities. By contrast, residential starts fell 3%, and nonbuilding starts fell by less than 1%. Without the three large manufacturing projects, total construction would have declined 6% in February.
Year-to-date, total construction was 14% higher in the first two months of 2022 than in the same period of 2021. Nonresidential building starts jumped 39%, and residential starts gained 5%. For the 12 months ending February 2022, total construction starts were 16% above the 12 months ending February 2021. Nonresidential starts were 23% higher and residential starts gained 19%.
“The manufacturing sector has been an important success story for construction since the pandemic began,” says Richard Branch, chief economist for Dodge Construction Network. “Domestic producers are expected to seek more control over their supply chains in the future, so that aspect of construction should continue to flourish. However, as evident in February’s data, other sectors are struggling to gain traction in the face of high material prices and worker shortages. The conflict in Ukraine will continue to put upward pressure on costs, making the sector’s recovery more tenuous in 2022.”
Nonresidential building starts jumped 32% in February to a seasonally adjusted annual rate of $385.6 billion. Manufacturing starts more than doubled as three large plants got underway. If not for these three projects, total nonresidential starts would have lost 15%. In February, commercial starts fell 8%, and institutional starts lost 22%.
For the 12 months ending February 2022, nonresidential building starts were 23% higher than in the 12 months ending February 2021. Commercial starts were up 17%, institutional starts rose 12% and manufacturing starts advanced 143% on a 12-month rolling sum basis.
The largest nonresidential building projects to break ground in February were the $10 billion Intel chip fabrication plants in Chandler, Ariz., U.S. Steel’s $1.5 billion steel mill in Osceola, La., and Intel’s $550 million renovation of the Rio Rancho, N.M., semiconductor facility.
In February, residential building starts fell 3% to a seasonally adjusted annual rate of $429 billion. Single-family starts lost 4%, but multifamily starts increased 2%.
For the 12 months ending February 2022, residential starts improved 19% from the 12 months ending February 2021. Single-family starts were 14% higher, while multifamily starts were 31% stronger on a 12-month rolling sum basis.
The largest multifamily structures to break ground in February were the $400 million 400 Central condos in St. Petersburg, Fla., the $220 million Journal Squared apartments in Jersey City, N.J., and the $147 million Miami World Tower building in Miami.
Regionally, total construction starts in February rose in the Midwest, South Atlantic and West regions but fell in the Northeast and South Central.