Dodge Construction Network data shows that total construction starts grew by 20% in December 2023 to a seasonally adjusted annual rate of $1.12 trillion.

Construction starts ended 2023 on a positive note, reports Dodge Construction Network (DCN). Organizational data shows that total construction starts grew by 20% in December to a seasonally adjusted annual rate of $1.12 trillion. Additionally, nonresidential building starts rose by 37% in December, and residential starts increased by 8%.

For 2023, total construction starts lost 4% compared to the previous year. Residential and nonresidential starts were down 13% and 8%, respectively.

“Looking ahead, the new year promises that positive momentum will continue to build,” said Richard Branch, DCN’s chief economist. “The planning queue is stabilizing, and the promise of lower rates should spur construction. While hurdles remain, including scarce labor and tight credit, 2024 should be a more positive year for the construction sector.”

Nonresidential

Nonresidential building starts gained 37% in December from November to a seasonally adjusted annual rate of $479 billion. Manufacturing starts gained 75%, and commercial starts rose 48%, with all categories seeing sizeable gains. Institutional starts rose 22% with increases in education, public buildings, and recreation, offsetting a decline in healthcare starts. In 2023, total nonresidential starts were 8% lower than in 2022. Institutional starts gained 7%, while commercial and manufacturing starts fell 12% and 27%, respectively.

The largest nonresidential building projects to break ground in December were the $2.7 billion Texas Instruments fabrication plant in Sherman, Texas, the $1.1 billion OxyChem Project Orca in La Porte, Texas, and the $815 million University of Chicago Cancer Center in Chicago.

Residential

Residential building starts grew 8% in December to a seasonally adjusted annual rate of $391 billion. Single-family starts increased by 1%, while multifamily starts rose by 22%. In 2023, total residential starts were down by 13%, with single-family starts dropping 13% and multifamily starts by 12%.

The largest multifamily structures to break ground in December were the $430 million Auberge South Beach Condo project in Miami Beach, Florida, the $325 million 2600 Biscayne mixed-use project in Miami, and the $300 million mixed-use project at 55 Hudson St in Jersey City, New Jersey.

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