Dodge: Construction starts increase in October

By |  November 17, 2022

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Total construction starts rose 8 percent in October to a seasonally adjusted annual rate of $1.12 trillion, according to Dodge Construction Network.

In October, nonresidential building starts gained 9 percent and nonbuilding starts rose 26 percent. Residential starts fell 3 percent for the month.

On the year, total construction was 16 percent higher than in the first 10 months of 2021. Nonresidential building starts rose 37 percent January to October 2022, residential starts remained flat, and nonbuilding starts were up 17 percent in that time.

“October’s gain in construction starts is a further sign that the construction sector continues to weather the storm of higher interest rates,” says Richard Branch, chief economist at Dodge Construction Network. “While the residential sector is feeling the pain, the nonresidential building and infrastructure sectors are hitting their stride. Some weakness is to be expected as the Federal Reserve continues its battle with inflation. However, the damage should be isolated to a few verticals and not as widespread as what the industry witnessed during the Great Recession.”


Nonbuilding construction starts rose 26 percent in October to a seasonally adjusted annual rate of $277.7 billion. Highway and bridge starts rose 57 percent, utility/gas plant starts increased 19 percent, and environmental public works starts were 13 percent higher.

According to Dodge, the growth is tempered because miscellaneous nonbuilding starts fell 20 percent in the month. Through the first 10 months of the year, total nonbuilding starts were 17 percent higher than the same period of 2021. Highway and bridge starts were 25 percent higher, environmental public works were 14 percent higher, and miscellaneous nonbuilding starts increased 17 percent on a year-to-date basis. Utility/gas plant starts were flat in this time.

The largest nonbuilding projects to break ground in October were the $576 million Texas DOT (Department of Transportation) Interstate Highway 820 reconstruction project in Fort Worth, Texas, the $548 million Texas DOT Interstate Highway 35 widening project in Austin, Texas, and the $364 million repaving project in Honolulu.


Nonresidential building starts rose 9 percent in October to a seasonally adjusted annual rate of $480.5 billion.

Commercial starts rose 19 percent during the month and were led by office and hotel projects. Institutional starts rose 8 percent due to a surge in education projects, and manufacturing starts fell 5 percent.

Through the first 10 months of 2022, nonresidential building starts were 37 percent higher than the first 10 months of 2021. Commercial starts grew 23 percent in that time, and institutional starts rose 21 percent. Manufacturing starts were 157 percent higher on a year-to-date basis.

The largest nonresidential building projects to break ground in October were a $3.2 billion Texas Industries chip fabrication plant in Sherman, Texas, the $2 billion General Motors Orion EV plant in Orion Township, Michigan, and the $1 billion Gevo Net-Zero 1 hydrocarbon plant in Lake Preston, South Dakota.


Residential building starts fell 3 percent in October to a seasonally adjusted annual rate of $366.4 billion. Single-family starts lost 3 percent in the month, while multifamily starts dropped 4 percent.

On the year, residential starts were flat compared to the same timeframe in 2021. Multifamily starts were up 26 percent while single-family housing slipped 10 percent in that time.

The largest multifamily structures to break ground in October were the $564 million Long Island City Center II in Long Island City, New York, the $450 million Waldorf Astoria residences and hotel in Miami, and the $167 million Modera McGavock mixed-use building in Nashville, Tennessee.

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About the Author:

Jack Kopanski is the Managing Editor of Pit & Quarry and Editor-in-Chief of Portable Plants. Kopanski can be reached at 216-706-3756 or

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