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Project starts continued strong momentum in the spring after a slow start to the year, according to the Dodge Construction Network.
Total construction starts up 10% at a seasonally adjusted annual rate of $1.24 trillion, according to the Dodge Construction Network. The increase marks the second month of growthand the biggest increase of the year, said Richard Branch, chief economist at Dodge Construction Network.
That was largely due to gains in the utilities, single-family, warehouse and education sectors, Branch said.
“While May’s gain in construction starts was primarily due to a handful of large projects, the data highlights that there is some underlying demand in the market,” Branch said. “In particular, single-family starts have increased in eight of the past 12 months despite high mortgage rates.”
That growth in single-family homes will spur more demand for startups in retail, health and education, among others, Branch said. It added stability to the Dodge Momentum Indexwhich monitors the projects in planning, underlines this optimism.
Here are the top nine projects to start in May:
- Trains 1 and 2 of the $11 billion Port Arthur LNG project in Port Arthur, Texas.
- Dominion Energy’s $10 billion offshore wind project in Virginia Beach, Virginia.
- The $2.1 billion Tennessee Titans football stadium in Nashville, Tennessee.
- The $1 billion Gotion EV battery plant in Manteno, Illinois.
- The $1 billion Green River Energy Center in Emery County, Utah.
- General Motors’ $875 million battery cell factory in New Carlisle, Indiana.
- The $200 million Atlantic Club in Long Branch, New Jersey.
- The $150 million mixed-use project at 880 Atlantic Ave. in Prospect Heights, New York.
- The $150 million Tuscany at Gabriella Pointe in Gilbert, Arizona.
Startups remain in growth mode over the past year
For the 12 months ending in May 2024, total construction starts are up 2% from a year earlier, according to Dodge.
Non-residential starts, which include retail, office and warehouse projects, declined 7% over the past year, while housing and non-building starts, which include highways, streets, bridges, gas plants and environmental public works, increased by 5% and 14%, respectively. .
Sector performance
Nonresidential building starts fell 2 percent in May, due to a 14 percent decline in manufacturing projects, Branch said, after strong growth in April. Institutional projects, such as healthcare, also fell by 6% in May. Year to date, non-residential starts rose 3%, indicating moderate performance despite a challenging economic environmentaccording to the report.
New nonbuilding construction jumped 49% in May, specifically due to two multibillion-dollar energy projects in Texas and Virginia. In the first five months of 2024, nonbuilding starts improved 17% compared to the same period in 2023, largely due to growth in gas and utility projects.
Housing starts fell 7% in May, according to the report. Single-family starts rose 2% for the month, while multi-family starts fell 25%. However, despite the monthly decline, year-to-date residential starts were up 16%, while single-family starts were up 29%, according to Dodge.
