The total number of construction starts increased by 5% in November to a seasonally adjusted annual rate of $1.2 trillion. According to Dodge Construction Network, nonresidential building starts grew by 2%, nonbuilding starts were 16% high, and residential starts fell by 1%. 

For the 12 months ending November 2024, total construction starts were up 4% from the 12 months ending November 2023. Residential starts were up 7%, nonresidential starts were up 2%, and nonbuilding starts rose 4% over the same period. The number of manufacturing starts was down 52%.

"Construction starts continue to move sideways as the market waits for further rate cuts," Richard Branch, the chief economist of Dodge Construction Network, stated. "Elevated interest rates, labor shortages, and strict lending standards will continue to constrain construction activity in the near term."

The largest nonbuilding project to break ground in November was a $2.9 billion project in Palm Beach County, Florida. The largest nonresidential building project to break ground last month was the $3.4 billion detention facility in Brooklyn, New York, and the largest residential project was the $675 million Utopia Living apartments in Flushing, Queens.

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

Read more about the recent encouraging economic signs for the industry in the sixth installment of our State of AEC series.