Construction starts rose a total of 17% for July to a seasonally-adjusted rate of $1.2 trillion, according to the just-released report from Dodge Construction Network.

The latest data also indicated a 7% year-to-date drop in total construction starts when compared to the July 2022 totals. Nonresidential starts fell another 6%, while residential starts went up by another 20%. 

“Construction starts have plateaued and are making little headway,” Richard Branch, the chief economist for Dodge Construction Network, said in a press release. “Higher interest rates, labor shortages, and material prices continue to impact the flow of construction starts — resulting in little forward momentum over the last 12 months. The lag in nonresidential building projects entering the planning stage will slow starts as the year progresses, which should be offset by rising infrastructure activity.”

The sole cause for the 38% rise in the nonbuilding sector was the $12 billion Rio Grande LNG facility in Brownsville, Texas. The index shares its projections for a 7% drop in the sector without it. The first 12 months ending July 2023 saw total nonbuilding rise 21% over the same period last year. The seasonally adjusted rate for nonbuildings is now $440 billion.

Residential building starts rose 20% in July to a seasonally adjusted annual rate of $414 billion. Single-family starts gained just 2%, while multifamily starts rose a dramatic 62% higher. On a year-to-date basis through July 2023, total residential starts were down 21%; however, with single-family starts 25% lower, and multifamily starts down another 14%. The $1 billion Clarkson Square condo and apartment building in New York City led all projects in the category overall.

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