The total number of construction starts fell by 6% in September, resulting in a seasonally adjusted annual rate of $1.1 trillion, according to Dodge Construction Network’s latest Construction Starts Index. Nonbuilding starts fell 11%, residential starts decreased by 1%, and nonresidential building starts were down 6%. 

On a year-to-date basis through September, total construction starts were up 2% from the same period in 2023. Residential starts were up 7%, nonresidential buildings rose 2%, and nonbuilding starts fell 3%. For the 12 months ending September 2024, total construction starts were up 1% from the 12 months ending September 2023. Residential starts were up 6%, nonresidential building starts were unchanged, and nonbuilding starts decreased by 4% on a 12-month rolling sum basis.

“Construction starts are treading water,” said Dodge Construction Network chief economist, Richard Branch. “September’s rate cut was just the first step in unwinding a period of high rates and several more cuts will be needed to start moving construction projects through the planning process to start. More consistent growth in construction starts should begin to materialize early in the new year.”

The largest nonbuilding project to break ground in September was the $848 million Hillview Reservoir in Yonkers, New York. The largest in the nonresidential building category was the $2.9 billion UCSF Helen Diller Medical Center in San Francisco. The residential sector was led by the $211 million Ray Nashville mixed-use project in Nashville.

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