Total construction starts rebounded in April according to a new Dodge Construction Network study, rising 3% to a seasonally adjusted annual rate of $945.8 billion. Nonresidential building starts rose 6% and residential starts increased by 4%, while nonbuilding starts decreased by 4%.

Compared to the first four months of 2021, total construction starts were 6% higher during the same period in 2022. Nonresidential building starts and residential starts rose 19% and 3% respectively, while nonbuilding starts were 2% lower. And, for the 12 months ending April 2022, total construction starts were 12% above that period ending April 2021. Nonresidential starts were 24% higher, residential starts increased 11%, and nonbuilding starts fell 1%. 

“The construction sector is seemingly shrugging off the fear of higher interest rates and a potential recession,” said Dodge Construction Network chief economist Richard Branch. “Many building sectors have made the turn from weakness to recovery as underlying economic growth and hiring are solid. With the pipeline of projects in planning continuing to expand, this trend should continue in the months to come. However, the concern that the Federal Reserve will force the U.S. into recession later this year may thwart the momentum in construction starts. While recession is not our baseline forecast, it can not be fully discounted.”

For the nonbuilding sector in April, starts in the environmental public works category rose 8%, while utility/gas plant starts also moved 10% higher. On the other hand, starts for highway and bridge projects fell 14% and miscellaneous nonbuilding starts dropped 2% last month. Through the first four months of 2022, highway and bridge starts gained 28% and environmental public works projects rose 2% compared to the same period in 2021. However, miscellaneous nonbuilding and utility/gas plants starts fell 37% and 39% respectively. For the 12 months ending April 2022, environmental public works starts were up 10% and street/bridge starts gained 6% compared to the 12 months ending April 2021. Miscellaneous nonbuilding starts were 33% lower and utility/gas plant starts fell 3%.

The gain in nonresidential building starts last month was driven by rises in commercial, institutional, and manufacturing starts. Each of these categories exhibited gains in the first four months of 2022 compared to the same time in 2021, with manufacturing starts soaring 189%. A similar result was seen in the year-long period ending April 2022, where each nonresidential category yielded increases compared to the 12 months ending April 2021. 

For residential building starts in April, single-family starts gained 1% and multifamily starts rose 13%. Through April 2022, multifamily starts were up 16%, while single-family housing fell 2% compared to the first four months in 2021. For the 12 months ending April 2022, single-family starts were 6% higher and multifamily improved 27% from the same period ending April 2021. 

Regionally, total construction starts in April rose in the Northwest, South Atlantic, and South Central regions but fell in the Midwest and West.