Construction Starts Up 16% in October
November 17, 2021 from Floor Focus FloorDaily.net News
Hamilton, NJ, November 17, 2021 – Total construction starts pushed 16% higher in October to a seasonally adjusted annual rate of $1.01 trillion, according to Dodge Construction Network. Nonresidential building starts gained 29% and nonbuilding moved 52% higher in October, while residential starts lost 8%. The month’s large gains resulted from the start of three large projects: two massive manufacturing plants and an LNG export facility. Without these projects, total construction starts would have fallen 6% in October.
* Nonbuilding construction starts rose 52% in October to a seasonally adjusted annual rate of $268.4 billion. This increase was solely due to the start of an $8.5 billion LNG export facility, which lifted the utility/gas plant category significantly. However, even without this project, the utility/gas plant category would still have registered a strong gain because of the very low level of activity in September. The public works side of nonbuilding construction was more dismal.
Miscellaneous nonbuilding starts fell 43% over the month, and highway/bridge and environmental public works starts lost 14% and 16% respectively. Year-to-date, total nonbuilding starts were 2% higher through October. Environmental public works were 23% higher, and utility/gas plant starts are up 14%. At the same time, highway and bridge starts were 7% lower, miscellaneous nonbuilding fell 13%, and utility/gas plant starts fell 10% during the first ten months of the year.
For the 12 months ending in October 2021, total nonbuilding starts were 1% lower than the 12 months ending in October 2020. Environmental public works starts were 22% higher but highway and bridge starts were down 7%. Utility and gas plant starts were down 10% and miscellaneous nonbuilding starts were 7% lower on a 12-month rolling basis.
* Nonresidential building starts shot 29% higher in October to a seasonally adjusted annual rate of $357.2 billion. The catalyst for the increase was a large gain in the manufacturing sector as two very large projects kicked off. If not for these projects, total nonresidential building starts would have been down 3% over the month. In October, commercial starts lost 4%, with only hotels posting a gain. Institutional starts gained 4%, with all categories rising. In the first ten months of 2021, nonresidential building starts were 11% higher. Commercial starts increased 9%, manufacturing starts were 94% higher (39% without the large projects this month), and institutional starts were up 3%.
For the 12 months ending in October 2021, nonresidential building starts were 4% higher than in the 12 months ending in October 2020. Both commercial and institutional starts were up 2%, and manufacturing starts moved 24% higher in the 12 months ending October 2021.
* Residential building starts fell 8% in October to a seasonally adjusted annual rate of $388.6 billion. Single family starts gained less than 1%, while multifamily starts fell 24%. Through the first ten months of 2021, residential starts were 21% higher than in the same period one year ago. Single family starts gained 22% and multifamily starts grew 10%.
For the 12 months ending in October 2021, total residential starts were 20% higher than the 12 months ending in October 2020. Single family starts gained 23% and multifamily starts were up 11% on a 12-month sum basis.
* Regionally, total construction starts improved in the South Central and West regions, while slipping in the Northeast, Midwest, and South Atlantic regions.