Construction starts have risen 10% for the month of July to a new seasonally-adjusted rate of $1.1 trillion, according to the latest data published by Dodge Construction Network (DCN). For the month, nonresidential buildings rose 25% and infrastructure starts were shown to increase by 19% as starts in the residential construction sector fell by 8%.

This reverses June’s 19% decline. On a year-to-date basis through the end of July, total construction starts were up 6% from the first seven months of 2023. Residential starts rose 11%, nonresidential buildings were up by 5%, and starts for nonbuildings remained flat. 

For the 12 months ending July 2024, total construction starts were up 3% from the 12 months ending July 2023. Nonresidential building starts were down 1%, residential starts were up 7%, and nonbuilding starts were up 5% on a 12-month rolling sum basis.  

“Construction starts showed great promise in July,” Richard Branch, chief economist of Dodge Construction Network. “However, the short-term remains questionable due to high interest rates. The Federal Reserve is likely to cut interest rates in September, which will, over time, make market conditions more conducive to moving projects forward. In the meantime, construction starts will likely remain volatile over the next few months.” 

The largest nonbuilding project to break ground last month was the $1.5 billion Revolution Wind offshore wind farm between Connecticut and Rhode Island. The largest nonresidential building to begin construction was the $2.1 billion Novo Nordisk plant in Clayton, North Carolina. The $300 million Music Row Albion apartment towers in Nashville, Tennessee, led all starts in the multifamily category.

Regionally, starts in July rose in all regions.