Construction starts for March have dropped by 1% to a seasonally adjusted annual rate of $1.06 trillion, according to the latest figures released in Dodge Construction Network's new Construction Starts Index. 

For the month, nonresidential building starts went down 9%, while nonbuilding starts dipped another 7%, and residential starts were up by 1%. On a year-to-date basis, the total number of all starts was up 13% compared to the same three-month period in 2023. Residential starts increased by 24%, while nonbuilding starts gained 16%, and nonresidential building starts went up by 2%.

“The construction sector has hit a soft patch to start 2024,” Richard Branch, the chief economist for Dodge Construction Network, said. “However, this should not be overly surprising given high rates and restrictive credit. There are bright spots though, as single-family starts are moving higher and federal dollars are lifting nonbuilding starts. The recent hot inflation readings likely mean that rate cuts won’t happen until later in the year, and as a result, the commercial and multifamily sectors will continue to languish.”

Nonbuilding construction starts gained 7% in March to a seasonally adjusted annual rate of $298 billion, while nonresidential building starts fell 9% to a seasonally adjusted annual rate of $363 billion. Residential building starts gained 1% in March to a seasonally adjusted annual rate of $400 billion.

The largest projects to enter planning were the $1.3 billion Rady Children’s Hospital Intensive Care Unit in San Diego, the $1 billion Eland Solar and Battery Storage facility in Mojave, California, and the $908 million SR826 road and bridge project in Miami.

Regionally, total construction starts in March gained in the South Central and West regions while declines were recorded in every other.