Dodge Data & Analytics, New York, has reported construction starts rose 10% in May after rising 6% in April.
Nonresidential building construction fell 2% in May as manufacturing fell 14%. Institutional starts fell 6%, and commercial starts grew 10% because of gains in warehouse, office and parking starts.
Residential building construction fell 7% in May. Single-family housing rose 2%, and multifamily starts dropped 25%.
Nonbuilding construction increased 49% in May.
For the 12 months ending May 2024, total construction starts were up 2% compared with the 12 months ending May 2023. Nonbuilding construction grew 14%; nonresidential building fell 7%; and residential building rose 5%.
“Even though May’s gain in construction starts was mainly due to a handful of large projects, the data highlights that there is some grassroots demand building in the market,” said Richard Branch, chief economist of Dodge Construction Network. “Single-family starts, in particular, have risen in 8 of the last 12 months despite high mortgage rates. Growth in single-family will incentivize further demand for retail, health, and education starts, among others, and the stability in the Dodge Momentum Index, which tracks projects in planning, underscores this optimism.”
