Third consecutive monthly decline pushes starts to 11-month low
HAMILTON, New Jersey — September 20, 2021 — Total construction starts fell 9% in August to a seasonally adjusted annual rate of $782.8 billion, according to Dodge Data & Analytics. All three sectors lost ground during the month: nonbuilding starts were down 2%, residential starts were 9% lower, and nonresidential building starts fell 13%.
“Construction starts have hit a rough patch following the euphoria seen in the early stages of recovery from the pandemic,” stated Richard Branch, Chief Economist for Dodge Data & Analytics. “The Delta variant has raised concern that the fledgling economic recovery is stalling out, undermining the already low level of demand for most types of nonresidential buildings. Additionally, significant price increases for construction materials, logistic constraints, and labor shortages are making a challenging situation worse. Construction starts are likely to remain unsteady over the next few months. However, the dollar value of projects entering planning continues to suggest that the recovery in construction starts should resume early in the new year.”
Below is the full breakdown:
For the 12 months ending in August 2021, total nonbuilding starts were 2% lower than the 12 months ending in August 2020. Environmental public works starts were 22% higher and highway and bridge starts were up 3%, while utility and gas plant starts were down 17% and miscellaneous nonbuilding starts were 22% lower on a 12-month rolling basis.
The largest nonbuilding projects to break ground in August were the $677 million Oak Hill Parkway roadway in Austin, TX, the $351 million southern expansion of the Kansas City Streetcar system in Kansas City, MO, and the $300 million first phase of the Dunns Bridge Solar Project in Wheatfield Township, IN.
For the 12 months ending in August 2021, nonresidential building starts were 8% lower than in the 12 months ending in August 2020. Commercial starts were down 8%, institutional starts fell 4%, and manufacturing starts dropped 29% in the 12 months ending August 2021.
The largest nonresidential building projects to break ground in August were the $800 million first phase of the Facebook Eastmark Parkway data center in Mesa, AZ, the $400 million Facebook data center in Springfield, NE, and the $350 million Pratt & Whitney Project Ranger manufacturing building in Asheville, NC.
For the 12 months ending in August 2021, total residential starts were 21% higher than the 12 months ending in August 2020. Single family starts gained 28%, while multifamily starts were up 2% on a 12-month sum basis.
The largest multifamily structures to break ground in August were the $615 million Flamingo Crossing Apartments in Winter Garden, FL, the $400 million 1018 West Peachtree apartments in Atlanta, GA, and the $374 million Victoria Place Gateway Tower in Honolulu, HI.
AUGUST 2021 CONSTRUCTION STARTS
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Eric Becker | 104 West Partners | email@example.com
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