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Dodge: Construction starts climb in January 2022

By |  February 16, 2022

Dodge Construction Network logo

Total construction starts increased 4 percent in January to a seasonally adjusted annual rate of $923.4 billion, according to Dodge Construction Network.

Nonresidential building starts increased 4 percent, and nonbuilding starts rose 18 percent. Residential starts fell 1 percent.

Compared to a year ago, total construction was 8 percent higher in January 2022 than in January 2021. Nonresidential building starts were up 14 percent, nonbuilding starts rose 12 percent and residential starts gained 2 percent.

For the 12 months ending January 2022, total construction starts were 13 percent above the 12 months ending January 2021. Nonresidential starts were 14 percent higher, residential starts gained 19 percent and nonbuilding starts were up 3 percent.

“Construction starts continue to climb, mostly unimpeded by rising materials prices and shortages of labor and key materials,” says Richard Branch, chief economist at Dodge Construction Network. “The number of projects in the planning pipeline suggests that the rising trend in construction should continue for the time being and will be spread across more sectors than last year. While the outlook is positive, the many challenges facing the sector will limit upside potential.”

Nonbuilding

Nonbuilding construction starts rose 18 percent in January to a seasonally adjusted annual rate of $198.9 billion.

Highway and bridge starts rose 33 percent, and utility/gas plant starts more than doubled. Still, environmental public works starts lost 9 percent, and miscellaneous nonbuilding starts fell 5 percent.

For the 12 months ending January 2022, total nonbuilding starts were 3 percent higher than the 12 months ending January 2021. Environmental public works starts were up 22 percent, and utility/gas plant starts rose 4 percent. Highway and bridge starts were 1 percent lower on a 12-month rolling sum basis, and miscellaneous nonbuilding starts were 16 percent lower.

The largest nonbuilding projects to break ground in January were the $1.6 billion Amtrak Gateway Portal Bridge Enhancement project in Secaucus, New Jersey, the $477 million US 183 North mobility corridor in Austin, Texas, and a $463 million LA1 paving project in Golden Meadow, California.

Nonresidential

Nonresidential building starts rose 4 percent in January to a seasonally adjusted annual rate of $293.7 billion.

The commercial sector moved 8 percent higher due to an increase in retail, office and warehouse starts. Institutional building starts gained 10 percent on gains in health care, transportation and recreation starts. Manufacturing starts fell 42 percent.

For the 12 months ending January 2022 nonresidential building starts were 14 percent higher than in the 12 months ending January 2021. Commercial starts were up 11 percent, institutional starts rose 8 percent and manufacturing starts gained 82 percent on a 12-month rolling sum basis.

According to Dodge, the largest nonresidential building projects to break ground in January were the $1.5 billion JFK Terminal 4 expansion in Queens, New York, the $647 million Rutgers Cancer Institute in New Brunswick, New Jersey, and the $550 million JM Smucker Uncrustables manufacturing facility in McCalla, Alabama.

Residential

Residential building starts fell 1 percent in January to a seasonally adjusted annual rate of $430.9 billion.

Single-family starts moved 2 percent higher, but multifamily starts fell 10 percent.

For the 12 months ending January 2022, residential starts improved 19 percent from the 12 months ending January 2021. Single-family starts were 2 percent lower, while multifamily starts were 26 percent stronger on a 12-month rolling sum basis.

The largest multifamily structures to break ground in January were the $370 million Seattle House mixed-use building in Seattle, the $300 million Broad & Washington mixed-use building in Philadelphia, and the $275 million Gateway II development in White Plains, New York.

Starts by region

Regionally, total construction starts in January rose in the Northeast, South Central and West, according to Dodge. They fell in the Midwest and South Atlantic.

Kevin Yanik

About the Author:

Kevin Yanik is the editor-in-chief of Pit & Quarry magazine. Yanik can be reached at 216-706-3724 or kyanik@northcoastmedia.net.

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