The latest construction starts statistics revealed by Dodge Construction Network for January report that the total number of starts grew 1% to a seasonally adjusted annual rate of $1.16 trillion. 

Nonbuilding starts rose 9% during the month, while nonresidential building starts fell by 2% and residential starts remained flat. For the year ending in January 2024, total construction starts were down 1% from the previous 12 months. Nonresidential building starts were down 5%, while residential starts were 8% lower. Nonbuilding starts were also up 17% on a 12-month rolling basis.

“Construction starts are struggling to make headway in the new year,” Richard Branch, the chief economist for Dodge Construction Network, said in a news release. “Construction starts will continue to struggle early on in 2024 as higher interest rates and tight credit standards are slowing down projects moving through the planning cycle to start. The Federal Reserve is expected to cut rates later this year. That will move some of these projects in the planning queue through to start and provide for a more stable rising trend in construction activity in the second half of the year.”

Nonbuilding starts rose by 9% to a seasonally adjusted annual rate of $280 billion, while nonresidential starts lost another 2% to a seasonally adjusted annual rate of $483 billion. Residential building starts remained flat at a seasonally adjusted annual rate of $393 billion.

The drop in nonresidential starts was driven by a 14% drop in starts for commercial building projects. The nonbuilding category was led by starts of environmental building projects, which totaled 38%. Residential starts were split between a 6% rise in multi-family starts and 3% fall in single-family projects. Regionally, total construction starts rose in the West but fell in every other region.

The largest projects to break ground for January were a $5.5 billion Texas Instruments fabrication plant in Lehi, Utah, the $2.6 billion Terminal B construction at George Bush Houston Airport, and the new $1.5 billion One Beverly Hills tower in Beverly Hills from Foster + Partners, Gensler, and RIOS.

For Archinect's summary of recent U.S. Census Bureau data on residential construction activity, click here.