Just a day after the U.S. Commerce Department reported major gains in homebuilding starts in November, Dodge Construction Network reported much more sobering data in its latest monthly construction starts report.
Dodge’s data showed that total U.S. construction starts fell 15% in November, dropping to a seasonally-adjusted rate of $927 billion — its lowest mark since January of this year. Nonresidential building led the decline, sinking 29% vs. October, while residential starts fell 6% and nonbuilding starts dipped 2%.
Year-to-date through November, total construction starts trailed 2022 by 4%. Residential and nonresidential starts were down 14% and 7%, respectively, while nonbuilding starts were up 19%.
“Construction starts are deeply feeling the impact of higher rates,” said Richard Branch, Dodge’s Chief Economist, in a Dec. 20 news release. “While the Federal Reserve seems poised to start cutting rates in the New Year, the impact on starts will lag. As a result, starts are expected to be weak through the mid-point of 2024 before growth resumes.”
See Dodge’s November Construction Starts Report here.
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