ConDig (18-Dec-19). US construction starts soared 37% in November as numerous large nonresidential projects broke ground, according to latest figures from Dodge Data & Analytics.
The hike propelled starts to a seasonally adjusted annual rate of $988.9 billion last month compared with $696.3 billion in October.
It comes amid a 61% surge in nonresidential building starts to a seasonally adjusted annual rate of $366.5 billion and a 82% rise in nonbuilding starts to $288.5 billion, while residential building was flat in November at $333.9 billion.
Nonresidential was boosted by the electric utility/gas sector due to the start of a large LNG plant as well as several wind power projects. Environmental public works starts (drinking water, sewers, hazardous waste, and other water resource projects) moved 51% higher over the month, while highway and bridge starts rose 18%. Miscellaneous nonbuilding starts, however, fell 33% in November.
The largest nonbuilding construction project to break ground in November was the $4 billion first phase of the Golden Pass LNG facility in Sabine Pass, Texas. Also starting in November was the $743 million Cheyenne Ridge Wind Farm in Cheyenne Wells CO and the $650 million High Prairie Wind Farm in Greentop MO.
For the first eleven months of 2019, nonbuilding construction was 6% higher than in the same period of 2018.
The nonresidential building sector was bolstered after several large projects got underway during the month, with manufacturing starts roaring up 782% over the month due to the start of a large petrochemical plant. Institutional starts rose 27% and commercial starts moved 23% higher. Only two nonresidential building categories fell in November – hotels and healthcare.
The largest nonresidential building project to break ground in November was a $7 billion ExxonMobil petrochemical ethylene project in Gregory, Texas. Also starting in November was the Rancho Los Amigos South Campus $330 million office building in Los Angeles as well as the $296 million first phase of the Volkswagen Body Shop in Chattanooga.
For the year-to-date through November, nonresidential building starts were 3% lower than a year earlier.
Residential building starts were essentially flat when compared with the previous month at a seasonally adjusted annual rate of $333.9 billion.
Over the month, single family starts dropped 8%, offsetting a 20% gain in multifamily starts, Dodge Data reported.
The largest multifamily building to break ground was the $500 million Calyer Place Apartment Development in Brooklyn, New York. Also starting in November was the $350 million Seattle House Mixed-Use Development in Seattle, Washington, and the $350 million Avenue Bellevue Mixed-Use Development in Bellevue.
On a year-to-date basis through eleven months, total residential buildings starts were down 4%. Single family starts were 2% lower, while multifamily starts declined 10%.
“The presence or absence of large projects continues to add immense volatility to the monthly data,” stated Richard Branch, chief economist at Dodge Data and Analytics. “However, the underlying trend for the year remains intact – that construction starts are settling back following nine consistent years of growth.”