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Total construction starts rose 12% in October to a seasonally adjusted annual rate of $787.9 billon. While sizeable, the increase does not erase September’s substantial pullback in starts. All three major categories moved higher over the month, nonbuilding starts rose 25%, nonresidential buildings increased 19%, while residential activity gained 2%. Four of the five regions saw construction starts move higher in October, with the only decline coming in the South Central region.
Dodge Data & Analytics
Nonbuilding Construction
Nonbuilding construction posted a solid 25% gain in October, increasing to a seasonally adjusted annual rate of $222.4 billion. The gain was driven in large part by a sizeable tunnel project that drove highway and bridge starts 51% higher. The utility/gas plant category rose 41%, while miscellaneous nonbuilding gained 6%. Environmental public works fell 24% over the month.
The largest nonbuilding project to break ground in October was the $3.6 billion Hampton Roads Bridge and Tunnel project in Norfolk VA. Also starting in October was the $1.0 billion Gemini Solar Project in Clark County NV and the $450 million Indiana Crossroads Wind Farm in White County IN.
Through the first 10 months of the year, total nonbuilding starts were down 14% from the same time period of 2019. Starts in the highway and bridge category were up 8%, while environmental public works were 8% lower. The miscellaneous nonbuilding and utility/gas plant categories were each down 34% year-to-date. For the 12 months ending October 2020, total nonbuilding starts were down 7% from the 12 months ending October 2019. Street and bridge starts were 8% higher, while utility/gas plant starts were down 14%. Environmental public works starts were down 5% and miscellaneous nonbuilding starts were 29% lower in the 12 months ending October 2020.
Nonresidential Building
Nonresidential building starts recovered slightly from the sharp September decline, gaining 19% in October to a seasonally adjusted annual rate of $209.0 billion. Several large office and warehouse projects got underway during the month pushing commercial starts up 23%. Manufacturing starts gained 26% during the month, while a large courthouse project helped institutional starts gain 15%.
The largest nonresidential building project to get started in October was the $585 million third phase of the Project Echo Facebook Data Center in Sandston VA. Also getting started during the month was the $400 million Tesla Gigafactory in Austin TX and the $330 million Campus at Horton office project in San Diego CA.
Total nonresidential building starts were down 24% through the first 10 months of 2020. Commercial starts were 27% lower and institutional starts were 16% lower, while manufacturing starts tumbled 54%. For the 12 months ending October 2020, total nonresidential building starts were down 17%. Institutional building starts fell 13%, commercial starts dropped 20%, and manufacturing starts declined 22% over the 12 months ending October 2020.
Residential Building
Residential building starts moved 2% higher in October to a seasonally adjusted annual rate of $356.5 billion. The increase in the multifamily sector was robust, with starts rising 62% following a 52% loss the previous month. Single family starts fell 9% in October.
The largest multifamily building to break ground in October was the $386 million Waterview at Greenpoint project in Brooklyn NY. Also starting were a $250 million mixed-use project on 47th Street in New York NY and a $200 million residential tower on High Street in Houston TX.
Through the first 10 months of 2020, residential construction starts were 2% higher than in the same time period of 2019. Single family starts were up 8%, but multifamily starts were down 11%. For the 12 months ending in October, total residential starts were 4% higher than in the 12 months ending October 2019. Single family starts were up 8%, while multifamily starts were down 5%.