The latest data from November’s Dodge Construction Network report has revealed an 18% decline in total construction starts nationwide to an adjusted annual rate of $926.3 billion. 

The dip follows an October rebound that ended two consecutive months of declining figures. Total year-to-date starts for the first 11 months of the year were 14% higher than in 2021. Nonresidential building starts rose 36% in the same time period, while residential starts dropped by 1%, and nonbuilding starts went up by 16%. 

“Month-to-month volatility in construction activity continues to reign supreme as uncertainty mounts over the economy in 2023,” Dodge's chief economist Richard Branch said in a statement. “Higher interest rates and fear of recession are first and foremost on the mind of most builders and developers, and potentially restraining starts activity. However, as some material prices head lower and more public dollars come into the market for infrastructure and manufacturing projects, the year is ending with a fair bit of momentum. Next year will be a challenge, but nothing like the sector faced during the Great Recession.”

Nonresidential building starts reportedly fell 25% in November to a seasonally adjusted annual rate of $361.6 billion. Commercial starts fell by another 33%, while institutional starts were 12% lower. The manufacturing sector reported the biggest dip at 69%, while residential building fell 5% in November to a seasonally adjusted annual rate of $346.5 billion.

The biggest nonbuilding projects that broke ground in November were the $678 million 577MW Fox Squirrel solar farm in Wisconsin and a $522 million coastal resilience project near the Brooklyn Bridge. Nonresidential projects were led by the $1.1 billion Harbor-UCLA Medical Center from Hensel Phelps, HMC, and CO Architects. The biggest multifamily construction to break ground in November were the $345 million 601 N Central Ave mixed-use building in Phoenix and the $350 million YMCA of Middle Tennessee tower in Nashville.

According to the Index, declines in construction starts were recorded in all five regions.