Construction activity regained momentum in October after a brief dip to start the fall, according to Dodge Construction Network’s Nov. 21 report.
Total construction starts jumped 4% in October to a seasonally adjusted annual rate of $1.2 trillion. During the month, nonresidential building starts surged 14%, while nonbuilding starts such as highways, bridges and utility plants ticked up 2%. Residential building starts, on the other hand, declined by 3%, according to Dodge.
“Construction starts have yet to see the impact of falling interest rates,” said Richard Branch, chief economist of Dodge Construction Network. “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.”
Branch expects construction starts to pick up next year, especially as political uncertainty diminishes and interest rates potentially fall further. However, potential trade policy changes under President-elect Donald Trump’s administration, such as proposed tariffs, may drive up material costs for contractors, adding a new layer of unpredictability.
Due to those concerns, Branch said, “developers may wait until the full scope of President-elect Trump’s legislative agenda comes into better focus.”
Here are the nine largest U.S. projects to break ground in September:
- The $2.2 billion Henry Ford hospital tower in Detroit.
- The $1.6 billion natural gas pipeline and gathering system in and around Haynesville, Louisiana.
- The $1.4 billion third phase of the LG electric battery plant expansion for Toyota vehicles in Holland, Michigan.
- The $1.3 billion Amtrak-Connecticut River bridge replacement in Old Saybrook, Connecticut.
- The $1.1 billion second phase of the Southwest Florida Airport expansion in Fort Meyers, Florida.
- The $1 billion Frederick Douglass Tunnel Southern Approach in Baltimore.
- The $384 million Frederick E. Samuel Apartments in New York City.
- The $190 million Rivage Bal Harbour luxury condominiums in Bal Harbour, Florida.
- The $190 million 1 K St. Southwest mixed-use building in Washington, D.C.
Starts’ YTD growth
Total construction starts increased by 3% during the first 10 months of the year compared to the same period in 2023, according to Dodge.
Nonresidential starts inched up 1%, while residential groundbreakings increased 7%. Nonbuilding starts posted roughly no change during that year-to-date span, according to the report.
On a monthly basis, nonresidential construction starts increased 14%, largely due to a 114% spike in manufacturing starts. Nonbuilding starts jumped 2%, while residential starts dropped 3%.