According to a new Dodge Construction Network report, total construction starts rose 9% in February to a seasonally adjusted annual rate of $1.013 trillion. Nonresidential building starts carried the activity, jumping 32% due to the start of three large manufacturing facilities. However, residential starts fell 3% and nonbuilding starts fell by less than 1%. Without the three manufacturing projects, total construction would have declined 6% last month.
Total construction was 14% higher in the first two months of 2022 than in the same period of 2021. Nonresidential building starts are up 39%, nonbuilding starts rose 4%, and residential starts gained 5%. For the 12 months ending February 2022, total construction starts were 16% higher than the 12 months ending February 2021. Nonresidential jumped 23%, residential starts increased by 19%, and nonbuilding rose 1%.
Within the residential building sector, single-family starts decreased 4%, with multifamily starts increasing 2% in February. For the 12-month period ending February 2022, residential starts improved 19% compared to the same period the year prior. Single-family starts rose 14% and multifamily increased by 31% on a 12-month rolling sum basis.
The surge in nonresidential building starts last month is due to three large plants that broke ground. They are the $20 billion Intel chip fabrication plants in Chandler, Arizona, Steel’s $1.5 billion steel mill in Osceola, Louisiana, and Intel’s $3.5 billion renovation of the Rio Rancho, New Mexico semiconductor facility. If not for these three projects, total nonresidential starts would have fallen 15%.
Regionally, total construction starts in February rose in the Midwest, South Atlantic, and West regions but fell in the Northeast and South Central.
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