ConDig (17-Oct-24). US construction starts crumbled 6% in September to a seasonally adjusted annual rate of $1.1 trillion, according to Dodge Construction Network.

It comes as nonbuilding starts nosedived 11%, residential starts were down 1%, while nonresidential building starts were down 6% in September. 

For the year-to-date through September, total construction starts rose 2% from the first nine months of last year. Residential starts were 7% higher, nonresidential buildings up 2%, but nonbuilding starts were down 3%.  

“Construction starts are treading water,” said Richard Branch, chief economist of Dodge Construction Network. “September’s rate cut was just the first step in unwinding a period of high rates and several more cuts will be needed to start moving construction projects through the planning process to start. More consistent growth in construction starts should begin to materialize early in the new year.”

Nonbuilding construction fell 11% last month, falling to a seasonally adjusted annual rate of $309 billion. Highway and bridge starts climbed 5%, however, environmental public works dropped 13%, miscellaneous nonbuilding starts fell 14%, and utility/gas plants fell 30% in the month. For the year-to-date through September, total nonbuilding starts were down 3% from a year ago.

Nonresidential building starts fell 6% in September to a seasonally adjusted annual rate of $409 billion. Manufacturing starts fell 30%, institutional starts lost 10% despite a solid increase in healthcare starts, while commercial starts were up 9% due to gains in warehouse and office/data center activity. For the year-to-date through September, total nonresidential starts were up 2%.

Residential building starts fell 1% in September to a seasonally adjusted annual rate of $382 billion. Single family starts rose 2%, while multifamily starts were down 6%. For the year-to-date basis through September, total nonresidential starts were up 2%.