Total Construction Starts Jump 4% in October, Led by Nonresidential Gains

Nonresidential building starts improved in October, offsetting a decline in residential starts. Overall total construction starts jumped 4% in October to a seasonally adjusted annual rate of $1.2 trillion. Dodge Construction Network’s (DCN) monthly construction starts index reports that nonresidential building starts grew 14%, while residential building starts fell by 3%. 

On a year-to-date basis through October, total construction starts were up 3% from the first 10 months of 2023. Residential starts were up 7%, and nonbuilding starts were up by around 1%.

“Construction starts have yet to see the impact of falling interest rates,” says Richard Branch, DCN’s chief economist. “Several more rate cuts will be needed to start moving construction projects through the planning process. Clarity has improved now that the election is in the rearview mirror; however, developers may wait until the full scope of president-elect Trump’s legislative agenda comes into better focus.”

Nonresidential 

Nonresidential building starts climbed 14% in October to a seasonally adjusted annual rate of $466 million. Manufacturing starts rose 114% during the month due to the start of several large projects. Institutional starts rose 13%, while commercial starts fell 3% despite gains in hotel starts. On a year-to-date basis through October, total nonresidential starts were up 1%. Institutional starts were 16% higher, commercial starts were down 1%, and manufacturing starts were 33% lower.

The largest nonresidential building projects to break ground in October were the $2.2 billion Henry Ford hospital tower in Detroit, the $1.4 billion third phase of the LG Electric Battery plant expansion for Toyota vehicles in Holland, Michigan, and the $1.1 billion second phase of the Southwest Florida Airport expansion in Fort Meyers, Florida.   

Residential 

Residential building starts fell 3% in October to a seasonally adjusted annual rate of $373 billion. Single-family starts lost 4%, while multifamily starts were down 2%. On a year-to-date basis through 10 months, total residential starts were 7% higher, single-family starts jumped 17%, and multifamily starts were down 9%.

The largest multifamily structures to break ground in October were the $384 million Federick E Samuel apartments in New York City, the $190 million Rivage Bal Harbour luxury condominiums in Bal Harbour, Florida, and the $190 million 1 K St. Southwest mixed-use building in Washington, D.C.