Total construction starts fell 6% in September to a seasonally adjusted annual rate of $1.2 trillion, according to Dodge Construction Network. Non-residential starts lost 4%, residential starts declined 6%, and non-building starts fell 9%.
Year-to-date through September 2023, total construction starts were 3% below that of 2022. Residential and non-residential starts were down 17% and 7%, respectively; however, non-building starts were up 25% on a year-to-date basis. For the 12 months ending September 2023, total construction starts were unchanged. Non-building starts were 22% higher, and non-residential building starts gained 3%. Conversely, on a 12-month rolling basis, residential starts posted a 16% decline.
What Dodge says
“Risks continue to mount for the construction sector,” says Richard Branch, chief economist for Dodge Construction Network. “Over the last 12 months, construction starts have essentially froze as rates increased and credit tightened. The industry needs further adjusting as rates are expected to stay higher for longer, along with the potential for higher energy costs and continued political uncertainty. A return to broad-based growth in construction starts is still some time away.”
