The total number of construction starts increased by 10% in May, according to data in Dodge Construction Network’s latest Construction Starts Index.

Nonbuilding starts increased by 49%, while residential starts fell 7% and nonresidential building starts went down 2%. On a year-to-date basis through the end of May, total construction starts were up 11% from the same period of 2023. Residential starts rose by 16%, while nonbuilding starts gained 17%, and nonresidential building starts went up by 3%.

The new seasonally adjusted annual rate was equal to $1.24 trillion.

“Even though May’s gain in construction starts was mainly due to a handful of large projects, the data highlights that there is some grassroots demand building in the market,” Richard Branch, Dodge Construction Network chief economist said in a statement. “Single-family starts, in particular, have risen in 8 of the last 12 months despite high mortgage rates. Growth in single-family will incentivize further demand for retail, health, and education starts, among others, and the stability in the Dodge Momentum Index, which tracks projects in planning, underscores this optimism.”

The largest nonresidential building project to break ground in May was the $2.1 billion Tennessee Titans Football Stadium in Nashville. The largest in the nonbuilding category was the $11 billion trains 1 & 2 of the Port Arthur LNG project in Port Arthur, Texas. A $200 million multifamily project in Long Branch, New Jersey, led all starts in the residential category.