The total number of construction starts increased by 4% in October to a seasonally adjusted annual rate of $1.2 trillion, according to Dodge Construction Network’s latest Construction Starts Index. Nonresidential building starts rose 14%, nonbuilding starts grew by 2%, while residential building starts fell 3%. 

On a year-to-date basis through October, total construction starts were up 3% from the same period in 2023. Residential starts were up 7%, nonresidential buildings rose 1%, and nonbuilding starts ticked up by less than one percent. For the 12 months ending October 2024, total construction starts were up 1% from the 12 months ending October 2023. Residential starts were up 6%, and nonresidential and nonbuilding starts were each down 1%.

“Construction starts have yet to see the impact of falling interest rates,” said Dodge Construction Network chief economist Richard Branch. “Several more rate cuts will be needed to start moving construction projects through the planning process to start. Clarity, though, has improved now that the election is in the rearview mirror; however, developers may wait until the full scope of President-elect Trump’s legislative agenda comes into better focus.”

The largest nonbuilding project to break ground in October was a $1.6 billion natural gas pipeline and gathering system in and around Haynesville, Louisiana. The largest nonresidential building project to break ground last month was the $2.2 billion Henry Ford hospital tower in Detroit, and the largest residential project was the $384 million Federick E. Samuel apartments in New York City.

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