Total construction starts across the United States rose 10% during September 2021 versus the previous month, according to new data from Dodge Construction Network. The 10% figure is an amalgamation of residential building starts, nonresidential building starts, and nonbuilding starts, all of which showed positive growth throughout the last month.

Residential construction starts rose 9% in September, with single-family projects rising 9% on the previous month, and multifamily homes increasing 24%. The positive figures also remain robust over a longer timeframe. Total residential starts were 22% higher over the past year than the 12 months to September 2020, including a 26% rise in single-family starts and a 10% rise in multifamily starts. The new data from Dodge correlates with other recent studies we have reported on, indicating a surge in U.S. residential construction and a rare increased demand for larger homes.

Meanwhile, nonresidential construction starts surged throughout September, gaining 15% on the previous month. Commercial buildings rose 13% driven by growth in hotel, warehouse, and retail sectors, while institutional building starts also rose 13%. Manufacturing starts rose 47%, in part due to a weak performance in August. Despite this broad growth, non-residential building starts were still 1% lower over the last year than in the previous 12-month period, driven by a 12% drop in manufacturing.

The construction starts for nonbuilding projects rose 6% in September, driven by 29% gains in both miscellaneous nonbuilding (pipelines, site work, etc.) and environmental public works (water, sewers, etc.). Highway and bridge project starts remained steady, with a less-than-one-percent increase. These gains were offset by a 53% decrease in starts for utility and gas plants. Over the past 12 months, nonbuilding starts were 1% lower than the 12 months ending in September 2020. While environmental public works were 22% higher, utility and gas plants were down 20%.

“Construction starts have struggled over the last three months as concerns over rising prices, shortages of materials, and scarce labor led to declines in activity,” said Richard Branch, Chief Economist for Dodge Construction Network, in a statement. “The increase in September, however, partially allays the fear that construction is headed for a free-fall and shows that owners and developers are still ready to move ahead with projects. Starts are likely to continue to trend in a positive but sawtooth fashion in the coming months until a more balanced recovery takes hold next year.”

Dodge’s data follows several industry insights we have reported over the past month. Earlier in October, we reported on the decline in North American crane counts during 2021, and a study forecasting that construction growth will outpace the manufacturing and services sector this decade. In September, meanwhile, we reported on how higher labor costs will impact the industry in 2022, despite the leveling-off of construction materials.