Total construction starts decreased 2 percent in December to a seasonally adjusted annual rate of $1.2 trillion, according to Dodge Construction Network.
Nonresidential building starts grew 2 percent, nonbuilding starts decreased 14 percent and residential building starts increased 4 percent.
On a year-to-date basis through December, total construction starts were up 6 percent from 2023. Nonresidential starts were up 4 percent and both residential and nonbuliding starts were up 7 percent in that time.
For the 12 months ending December 2024, total construction starts were up 6 percent compard to the 12 months ending December 2023. Residential starts were up 7 percent over that span, nonresidential starts were up 4 percent and nonbuilding starts rose 7 percent over the same period.
“Rate cuts prior to December supported some momentum in multifamily and commercial starts over the month,” says Sarah Martin, associate director of forecasting at Dodge Construction Network. “Sustained labor shortages and elevated materials prices will continue to add risk to the sector, in addition to the concern over tariffs and more strict immigration enforcement. Overall, the strength in the value of projects in planning and further Fed rate cuts should encourage growth in construction in 2025.”
Nonbuilding
Nonbuilding construction declined 14 percent in December to a seasonally adjusted annual rate of $322 billion.
Environmental public works starts declined 18 percent, utility/gas starts inched up 1 percent and miscellaneous nonbuilding starts fell 36 percent. Highway and bridge starts dropped 5 percent in December.
In 2024, total nonbuilding starts were 7 percent higher when compared to a year ago. Miscellaneous nonbuilding starts were up 26 percent, environmental public works starts were 24 percent higher and highway and bridge starts improved by 6 percent. Utility/gas starts were down 14 percent through December.
The largest nonbuilding projects to break ground in December were the $740 million Donald C. Tillman Advanced Water Purification Facility in Los Angeles, the $650 million Pulaski Solar Farm in Karnak, Illinois, and the $483 million Kelso Solar Farm in Blodgett, Missouri.
Nonresidential
Nonresidential building starts rose 2 percent in December to a seasonally adjusted annual rate of $482 billion.
Commercial starts were 6 percent higher during the month thanks to an increase in data center, hotel and retail starts, while institutional starts fell 3 percent. Manufacturing starts rose 19 percent over the month.
In 2024, total nonresidential starts were up 4 percent. Institutional starts increased 16 percent compared to a year ago, commercial starts were up 8 percent and manufacturing starts were down 35 percent on a year to date.
The largest nonresidential building projects to break ground in December were the $1.6 billion Lyndon B. Johnson Hospital Replacement in Houston, the $1.2 billion San Antonio International Airport Terminal C Development in San Antonio and the $1.1 billion Hard Rock Hotel in Las Vegas.
Residential
Residential building starts grew 4 percent in December to a seasonally adjusted annual rate of $397 billion.
Single-family starts fell 3 percent, while multifamily starts were up 24 percent.
In 2024, total residential starts were up 7 percent. Single-family starts increased 15 percent and multifamily starts were down 7 percent year to date.
The largest multifamily structures to break ground in December were the $510 million St. Regis Residences development in Miami, the $350 million Reflections Lakeside Resort in Orlando and the $210 million Ritz-Carlton Residences in The Woodlands, Texas.