The total value of construction starts for February fell by 8% to a seasonally adjusted annual rate of $1.07 trillion, according to the latest data from Dodge Construction Network.
For the month, nonresidential building starts dropped 16%, while nonbuilding starts were down 3%, and residential starts fell by 2%.
For the 12 months ending February 2024, total construction starts were up 2% from the 12 months ending February 2023. Nonresidential building starts were down 2%, while residential starts were 4% lower, and nonbuilding starts were up 19% on a 12-month rolling sum basis.
“Construction activity was hit hard by higher rates and more restrictive credit standards,” Richard Branch, the chief economist for Dodge Construction Network, said in a news release. “Starts struggled over the past several months as the lagged effect of higher rates impacted projects moving forward through the planning process. Additionally, the significant deficit of skilled labor led to further delays — especially in the manufacturing sector. While optimism should prevail in the second half of the year as the Federal Reserve begins to cut rates, some sectors like commercial, will make little headway over the remainder of the year.”
Nonbuilding construction starts fell 3% in February to a seasonally adjusted annual rate of $275 billion, while nonresidential building starts were down another 16% to a seasonally adjusted annual rate of $407 billion. Residential building starts went down 2% to a seasonally adjusted annual rate of $392 billion.
Among the largest projects to enter planning for the month were the $1.2 billion Hollywood Burbank Airport replacement project in Los Angeles County and the $500 million new 400 Lake Shore Drive North Tower replacement design from SOM in Chicago.
Regionally, total construction starts in February fell in every region but the South Atlantic.
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