Total housing starts fell 9% in August to a seasonally adjusted annual rate of $1.25 trillion, according to Dodge Construction Network.
The decline, however, follows a massive increase in July that saw the start-up of three large manufacturing plants and two LNG export facilities. Non-residential building starts rose 7% in August and residential starts rose 1%, while non-residential starts fell 36% in the month.
Year-to-date, total construction increased 16% in the first eight months of 2022 compared to the same period in 2021. Between January and August, non-residential building starts increased by 35 %, residential housing starts increased by 1% and non-construction housing starts increased. 21 percent at that time.
For the 12 months ending in August 2022, the total number of housing starts was 15% higher than the 12 months ending in August 2021. Non-residential housing starts increased by 33%, Housing starts rose 4% and non-construction starts rose 15% year-over-year.
“While construction start-up activity continues to be dominated by megaprojects such as chip factories, the middle and lower end of the value spectrum are holding up well,” said Richard Branch, chief economist. for Dodge Construction Network. “It’s a sign that organic growth in the construction sector has not yet been hurt by worries of a possible recession in 2023. While higher interest rates could negate this support in the coming months, the industry is in a very good position to continue modest growth.
Building not buildable
Non-real estate construction starts fell 36% in August to a seasonally adjusted annual rate of $278.8 billion. The drop follows a July that saw the start-up of two multi-billion dollar LNG export plants. If these projects had been excluded from July, non-building housing starts for August would have increased by 27%.
In August, highway and bridge starts rose 21%, environmental public works rose 39% and miscellaneous non-construction starts fell 9%.
In the first eight months of the year, total non-construction housing starts increased by 21% compared to the same period in 2021. Utilities and gas works housing starts increased by 57 % From January to August, construction starts for highways and bridges increased by 21% and environmental public works increased by 14%. higher since the beginning of the year. Miscellaneous non-construction starts, on the other hand, fell 14% during this period.
For the 12 months ending August 2022, total non-construction housing starts were 15% higher than the 12 months ending August 2021. Utilities and gas plant housing starts increased increased by 46%, construction starts for highways and bridges increased by 11% and environmental public works increased by 15% per year. over-year. During this period, miscellaneous non-construction starts fell by 14%.
The largest non-constructive projects to begin in August were the $1.9 billion New Soo Lock Chamber third phase in Sault Ste Marie, Michigan, a $738 million paving project in Honolulu and the first phase $460 million from the Sand Island Wastewater Treatment Plant in Honolulu. .
Non-residential building starts rose 7% in August to a seasonally adjusted annual rate of $569.6 billion. August’s gain comes after an increase in July that saw the construction of several major manufacturing projects. August’s gain was supported by an airport terminal, a chip manufacturing plant and a large hotel and entertainment complex.
Commercial housing starts rose 22% in August, with all categories posting an increase. Institutional housing starts rose 62%, despite lower housing starts in education and health care, and manufacturing housing starts fell 42% in the month.
In the first eight months of 2022, non-residential building starts increased by 35% compared to the same period in 2021. Commercial housing starts increased by 17% and institutional housing starts increased by 18%, while manufacturing housing starts have increased by 231% since the start of the year.
For the 12 months ending August 2022, non-residential building starts were 33% higher than the 12 months ending August 2021. Commercial and institutional starts each increased by 17% and manufacturing starts increased 224% on a 12-month rolling sum basis.
The biggest non-residential construction projects to start in August were the new $9.5 billion Terminal 1 at JFK airport in Jamacia, New York, the $8.5 billion Samsung chip factory in Taylor, Texas, and the $1.1 billion Gaylord Pacific Hotel & Convention Center in Chula. Vista, California.
Housing starts rose 1% in August to a seasonally adjusted annual rate of $400.7 billion. Single-family starts lost 10%, while multi-family starts gained 19%.
In the first eight months of 2022, residential housing starts rose 1% compared to the same period in 2021. Multi-family housing starts rose 28%, while single-family dwellings fell 8%.
For the 12 months ending August 2022, residential housing starts were up 4% compared to the same period ending August 2021. Single-family starts were 6% lower, while multi-family starts were 33% higher on a 12-month rolling sum basis.
The tallest multi-family structures to open in August were the $700 million Aria Reserve residential tower in Miami, the $500 million Van Ness 30 mixed-use tower in San Francisco and the 42-02 mixed-use tower $500 million Orchard Street on Long Island. City, New York.
Regionally, the total number of housing starts in August rose in the Northeast, South Atlantic and West, but fell in the Midwest and South Central.