Total construction starts rose 3 percent in April to a seasonally adjusted annual rate of $945.8 billion, according to Dodge Construction Network. Nonresidential building starts rose 6 percent and residential starts increased by 4 percent, while nonbuilding starts fell 4 percent. Year-to-date, total construction was 6 percent higher in the first four months of 2022 compared to the same period of 2021.
“The construction sector is seemingly shrugging off the fear of higher interest rates and a potential recession,” said Richard Branch, chief economist for Dodge Construction Network. “Many building sectors have made the turn from weakness to recovery as underlying economic growth and hiring are solid. With the pipeline of projects in planning continuing to expand, this trend should continue in the months to come. However, the concern that the Federal Reserve will force the U.S. into recession later this year may thwart the momentum in construction starts. While recession is not our baseline forecast, it can not be fully discounted.”
Residential building starts rose 4 percent in April to a seasonally adjusted annual rate of $462.9 billion. Single family starts gained 1 percent and multifamily starts rose 13 percent. Through the first four months of 2022, residential starts were 3 percent higher than in the first four months of 2021. Multifamily starts were up 16 percent, while single-family housing slipped 2 percent.
For the 12 months ending April 2022, residential starts improved 11 percent from the same period ending March 2021. Single-family starts were 6 percent higher and multifamily starts were 27 percent stronger on a 12-month rolling sum basis.
Visit construction.com for the full report of residential and non-residential building starts.
