Construction activity took a step back in September after a strong finish to the summer, Dodge Construction Network reported Oct. 17.
Total construction starts fell 6% in September at a seasonally adjusted annual rate of $1.1 trillion, according to Dodge. But if further interest rate cuts materialize in the coming months, as expected, more constant growth in the beginnings of construction should emerge early next year, said Richard Branch, chief economist at Dodge Construction Network.
“The construction starts are treading water,” Branch said. “September’s rate cut was just the first step in unwinding a period of high interest rates and it will take several more cuts to begin moving construction projects through the planning process to begin.”
Here are the nine largest projects in the U.S. that will break ground in September:
- The $2.9 billion UCSF Helen Diller Medical Center in San Francisco.
- The $848 million Hillview deposit in Yonkers, New York.
- The $800 million Project Cosmo data center in Laramie County, Wyoming.
- $779 million worth of bridge projects on I-95 and I-10 in Providence, Rhode Island.
- The $775 million Coolidge Generating Station natural gas expansion in Coolidge, Arizona.
- Microsoft’s $666 million data center in Mount Pleasant, Wisconsin.
- The $221 million Ray Nashville mixed-use project in Nashville, Tennessee.
- A $152 million mixed-use project in Jersey City, New Jersey.
- The $150 million lifetime living tower in Phoenix.
YTD growth begins
According to Dodge, total construction starts are flat 2% for the first nine months of the year compared to the same period in 2023.
Non-residential starts rose 2% year-to-date, while residential starts rose 7%. Nonbuilding starts, such as highways, bridges and utility plants, were down 3% in the first nine months compared to last year.
Monthly figures were more volatile. Nonresidential construction starts also fell 6% in September, largely due to a 30% drop in manufacturing projects and a 10% drop in institutional activity, such as education and healthcare, according to the report. However, strong activity in warehouses, offices and data centers boosted business starts by 9% over the 30-day period.
Nonbuilding construction declined 11% in September, mainly due to a 30% drop in gas and utility plant starts and a 13% drop in environmental public works. According to Dodge, residential starts fell 1% in September due to a 6% drop in multifamily starts.
