A new report from the Dodge Construction Network shows that total construction starts rose 27% in December to reach a seasonally adjusted annualized rate of $1.185 trillion. The figure is a recovery from his November slump, which dropped 18%. Through December, non-residential construction starts increased 51%, non-construction starts increased 30%, and residential starts increased less than 1%.
Total construction starts last year were 15% higher than in 2021. Non-residential building starts were up 38% year-on-year, while non-construction starts were up 19%, while housing starts were down 3%.
“As we entered December, it became clear where the strength of the current construction industry lies: manufacturing and infrastructure,” said Richard Branch, chief economist at Dodge Construction Network. It’s these segments that provide insulation to the sector as the economy softens in 2020. Recession or not, rising interest rates will weigh on the economy and constrain construction starts in 2023. However, It’s heartening to know that the new year is starting with positive momentum.”
The main driver behind the increase in non-building construction starts last month was the utility/gas category, with the $2.2 billion Champlain Hudson Power Express transmission line being started in New York State. In 2022, start-up activity increased across all non-building sectors, also driven by Utilities/Gas Plants, which increased by 26%. This was followed by increases in highway and bridge starts, environmental utilities and other non-building starts.
In the non-housing sector, manufacturing starts increased by a whopping 596% from November to December. Property openings also increased, while commercial openings declined due to a pullback in office and hotel openings. Over the course of the year, manufacturing construction activity drove all profits, up 185%. The largest non-residential building projects that broke ground in December are his $8.5 billion Golden Triangle Ethylene Cracker in Orange, Texas, and his $2 billion AltAir/World Energy renewable fuel facility in Paramount, California. bottom.
In December, single-family starts fell 5%, while multi-family starts rose 8%. Compared to 2021, 2022 housing starts fell by 3%. The largest multi-family housing project that broke ground last month was his $350 million first phase and $240 million mixed-use project at the Hamilton Green complex in White Plains, New York. Brooklyn.
Geographically, total construction starts increased in all five regions in December.