Total Construction Starts Increase in December

Total construction starts jumped 27% in December to a seasonally adjusted annual rate of $1.185 trillion, according to Dodge Construction Network. During the month, nonresidential building starts increased 51%, nonbuilding starts increased 30% and residential starts rose less than 1%.

Across 2022, total construction starts were 15% higher than in 2021. Nonresidential building starts rose 38% over the year, nonbuilding starts were up 19% and residential starts were down 3%.

Nonbuilding construction starts rose 30% in December to a seasonally adjusted annual rate of $281.4 billion. The utility/gas category was the main driver of the growth due to the start of a transmission line project. Miscellaneous nonbuilding starts rose 19% and highway and bridge starts were up 10%. However, environmental public works fell 4%. For the full year, total nonbuilding starts were up 19% from 2021. Starts activity in all sectors gained in 2022, led by utility/gas plants, which rose 26%. Highway and bridge starts were up 25% in the year, environmental public works increased by 15% and miscellaneous nonbuilding starts rose by less than 1%.

The largest nonbuilding projects to break ground in December were the $2.2-billion Champlain Hudson Power Express transmission line across several counties in New York state, the $1.2-billion New Fortress Energy Louisiana LNG terminal in Grande Isle, Louisiana and the $535-million Black Diamond solar project in Morgan and Sangamon counties, Illinois.

Nonresidential building starts gained 51% in December to a seasonally adjusted annual rate of $549.6 billion due to numerous large manufacturing projects getting underway. In December, manufacturing starts rose 596% from November to December. Institutional starts gained 11% with all subcategories improving. Commercial starts, however, fell 10% in December due to a pullback in office and hotel starts. For the full year, nonresidential construction rose 38% from 2021. Manufacturing construction activity led all gains, rising 185% over the year. Commercial starts were 25% higher in 2022, led by office and hotel activity, while warehouse and retail starts increased at a modest pace. Institutional starts were 19% higher in 2022, led by improvements in healthcare and education starts.

The largest nonresidential building projects to break ground in December were the $8.5-billion Golden Triangle Ethylene Cracker in Orange, Texas, the $2-billion AltAir/World Energy renewable fuels facility in Paramount, California, and the $1.4-billion Stellantis electric vehicle plant in Kokomo, Indiana.

Residential building starts remained flat in December at a seasonally adjusted annual rate of $353.8 billion. Single family starts lost 5%, while multifamily starts gained 8%. Residential starts were 3% lower in 2022 when compared to 2021. Multifamily starts were up 25%, while single family housing slipped 13%.

The largest multifamily structures to break ground in December were the $350-million first phase of the Hamilton Green complex in White Plains, New York, a $240-million mixed-use project on Dekalb Ave in Brooklyn, New York, and the $230-million 54 Crown Street building in Crown Heights, New York.

Regionally, total construction starts in December rose in all five regions.