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Total construction starts increased 6% in June to a seasonally adjusted annual rate of $641.4 billion. This marks the second consecutive monthly gain in construction starts following the COVID-19 induced declines in March and April. In June nonresidential building starts gained 6% and starts in the nonbuilding sector moved 27% higher. Residential starts, by contrast, fell 6% during the month.
Through the first six months of the year, starts were down 14% from the same period in 2019. Nonresidential starts fell 22%, nonbuilding starts were down 14%, and residential starts dropped 5%. For the 12 months ending in June 2020, total construction starts were down 2% from the previous 12 months. Nonresidential building starts were down 7% and residential building starts were flat, but nonbuilding starts were 3% higher in the past 12 months.
Nonbuilding Construction
Nonbuilding construction rose 27% in June to a seasonally adjusted annual rate of $191.1 billion. Utility/gas plants moved 108% higher in the month due to the start of over $2.0 billion in renewable power projects (split between solar and wind facilities). The miscellaneous nonbuilding category rose 63% in June, while environmental public works moved 38% higher. Construction starts for highways and bridges dropped 4% during the month.
The largest nonbuilding project to break ground in June was the $1.4 billion Federal Way Link Extension in Seattle WA. Also starting during the month were the $600 million Golden Hills Wind Project in Sherman county OR and the $438 million Athos I solar facility in Desert Center CA.
Through June, total nonbuilding starts were down 14% compare to the same time period in 2019. Highway and bridge construction starts were up 8%, while environmental public works and the miscellaneous nonbuilding sector were each 20% lower through the first six months of the year. Utilities/gas plants were down 40% on a year-to-date basis.
On a 12-month rolling basis, total nonbuilding starts were up 3% from the 12 months ending June 2020. Starts in the utility/gas plant category were 14% higher, while miscellaneous nonbuilding starts increased 6%. Street and bridge starts were 1% lower for the 12 months ending June, while environmental public works were down 4%.
Nonresidential Building
Nonresidential building starts moved 6% higher in June to a seasonally adjusted annual rate of $198.5 billion. Institutional building starts rose 15% during the month, while commercial building starts moved 4% higher. Manufacturing starts, however, fell 32% following the start of a $950 million steel plant in May.
The largest nonresidential building project to break ground in June was the $384 million Women’s and Children’s hospital tower in San Antonio TX. Also starting in June was the $306 million Aligned Energy Data Center in Ashburn VA and the $294 million renovation of SeaTac International Airport in Seattle WA.
On a year-to-date basis, total nonresidential building starts were 22% lower than the first six months of 2019. Institutional building starts were down 15%, while commercial starts were 27% lower. Manufacturing starts dropped 38% on a year-to-date basis.
On a 12-month total basis, total nonresidential building starts were 7% lower than the 12 months ending June 2019. Commercial starts have dropped 8%, while institutional starts were down 9%. Manufacturing starts are 9% higher on a rolling 12-month basis.
Residential Building
Residential building starts fell 6% in June to a seasonally adjusted annual rate of $251.8 billion. Both multifamily and single-family starts were lower during the month, with single family falling 7% and multifamily dropping 4%.
The largest multifamily structure to break ground in June was a $170 million mixed-use project in Jersey City NJ. Also starting during the month were the $113 million Flower Mart Apartments in Mountain View CA and the $100 million 509 4th Avenue project in New York NY.
Through the first six months of 2020, residential construction starts were down 5% versus the same time period in 2019. Single-family starts were 1% lower, while multifamily starts were down 16% year-to-date.
For the 12 months ending in June, total residential starts were flat when compared to the prior 12 months. Single-family starts were up 3%, while multifamily starts were off 6%.