Construction activity regained momentum in October after a brief dip to start the fall, according to a Nov. 21 report from the Dodge Construction Network.
Total construction starts up 4% in October at a seasonally adjusted annual rate of $1.2 trillion. During the month, non-residential building starts rose 14%, while non-building starts such as highways, bridges and utility plants rose 2%. Residential construction starts, on the other hand, decreased by 3%, according to Dodge.
“The beginnings of construction have not yet been seen impact of the drop in interest rates” said Richard Branch, chief economist at Dodge Construction Network. “Several more cuts will be needed to begin moving construction projects through the planning process to begin. The clarity, however, has improved now that the election is in the rearview mirror.”
Branch expects construction to begin picking up next year, especially as political uncertainty subsides and interest rates may fall further. However, possible changes in trade policy under the administration of President-elect Donald Trump, such as proposed ratesit can drive up material costs for contractors, adding a new layer of unpredictability.
Because of those concerns, Branch said, “developers may want to wait until the full scope of President-elect Trump’s legislative agenda comes into better focus.”
Here are the nine largest projects in the U.S. that will break ground in September:
- The $2.2 billion Henry Ford Hospital Tower in Detroit.
- The $1.6 billion natural gas pipeline and gathering system in and around Haynesville, Louisiana.
- The $1.4 billion third phase of LG’s electric battery plant expansion for Toyota vehicles in Holland, Michigan.
- The $1.3 billion Amtrak-Connecticut River Bridge replacement in Old Saybrook, Connecticut.
- The $1.1 billion second phase of the Southwest Florida Airport expansion in Fort Meyers, Florida.
- The $1 billion Frederick Douglass Tunnel Southern Approach in Baltimore.
- The $384 million Frederick E. Samuel Apartments in New York City.
- The $190 million Rivage Bal Harbor luxury condominiums in Bal Harbor, Florida.
- The mixed-use building 1 K St. $190 million Southwest in Washington, DC
YTD growth begins
Total construction starts rose 3% in the first 10 months of the year compared to the same period in 2023, according to Dodge.
Nonresidential housing starts rose 1%, while housing starts rose 7%. According to the report, non-building starts were roughly unchanged during this period of the year.
On a monthly basis, nonresidential construction starts rose 14%, largely due to a 114% increase in manufacturing starts. Non-building starts rose 2%, while residential starts fell 3%.
