2022 is speeding along, and with March quickly approaching, this means another Dodge Construction Network report has been released. In January, total construction starts increased 4% to a seasonally-adjusted annual rate of $923.4 billion. Nonresidential building starts increased 4% and nonbuilding starts rose 18%, with residential starts falling 1%. 

Compared to this time last year, total construction is 8% higher in January 2022 than in January 2021. Nonresidential building starts are up 14%, nonbuilding starts rose 12%, and residential starts gained 2%. For the 12 months ending January 2022, total construction starts were 13% above the 12 months ending January 2021. Nonresidential starts were 14% higher, residential starts increased 19%, and nonbuilding starts went up 3%.

“Construction starts continue to climb, mostly unimpeded by rising materials prices and shortages of labor and key materials,” stated Richard Branch, chief economist for Dodge Construction Network. “The number of projects in the planning pipeline suggests that the rising trend in construction should continue for the time being and will be spread across more sectors than last year. While the outlook is positive, the many challenges facing the sector will limit upside potential.”

Across the nonbuilding, nonresidential, and residential building starts, the largest projects all broke ground in January. Within the nonbuilding construction starts in January, highway and bridge starts rose 33% and utility/gas starts more than doubled. However, environmental public works fell 9% and miscellaneous nonbuilding starts dropped 5%. 

Within the nonresidential building starts last month, the commercial sector increased by 8% due to increases in retail, office, and warehouse starts. Institutional building starts expanded 10% on gains in healthcare, transportation, and recreation starts. Manufacturing starts fell 42%. And finally, within the residential building starts in January, single-family starts moved 2% higher, however, multifamily starts fell 10%. 

Regionally, total construction starts in January rose in the Northeast, South Central, and West but fell in the Midwest and South Atlantic.