Total Construction Slips in December But Ends 2024 with +6% Gain to $1.2 Trillion

Total construction starts decreased -2% in December to a seasonally adjusted annual rate of $1.2 trillion, according to Dodge Construction Network. Non-residential building starts grew +2% and nonbuilding starts moved -14% lower, while residential building starts grew +4%. On a year-to-date basis through December, total construction starts were up +6% from 2023. Non-residential starts were up +4%; residential starts were up +7%; and nonbuilding starts were up by +7%. For the 12 months ending Dec. 2024, total construction starts were up +6% from the 12 months ending Dec. 2023. Residential starts were up +7%, nonresidential starts were up +4% and nonbuilding starts rose +7% over the same period.

 
“Rate cuts prior to December supported some momentum in multi-family and commercial starts over the month,” said Sarah Martin, associate director of forecasting at Dodge Construction Network, in the press release. “Sustained labor shortages and elevated materials prices will continue to add risk to the sector, in addition to the concern over tariffs and more strict immigration enforcement. Overall, the strength in the value of projects in planning and further Fed rate cuts should encourage growth in construction in 2025.” 

Nonresidential

Nonresidential building starts rose +2% in December to a seasonally adjusted annual rate of $482 billion. Commercial starts were +6% higher during the month thanks to an increase in data center, hotel and retail starts, while institutional starts fell -3%. Manufacturing starts rose +19% over the month. In 2024, total nonresidential starts were up +4%. Institutional starts were +16% higher, while commercial starts were up +8%, and manufacturing starts were -35% lower on a year-to-date basis through December.

The largest non-residential building projects to break ground in December were the $1.6-billion Lyndon B. Johnson Hospital Replacement in Houston, TX; the $1.2-billion San Antonio International Airport Terminal C Development in San Antonio, TX; and the $1.1-billion Hard Rock Hotel in Las Vegas, NV.

Residential

Residential building starts grew+ 4% in December to a seasonally adjusted annual rate of $397 billion. Single-family starts fell -3%, while multi-family starts were up +24%. In 2024, total residential starts were +7% higher. Single-family starts increased +15%, and multi-family starts were down -7% on a year-to-date basis through December.

The largest multi-family structures to break ground in December were the $510- million St. Regis Residences development in Miami, FL; the $350-million Reflections Lakeside Resort in Orlando, FL; and the $210-million Ritz-Carlton Residences in The Woodlands, TX

Nonbuilding

The largest nonbuilding projects to break ground in December were the $740-million Donald C. Tillman Advanced Water Purification Facility in Los Angeles, CA: the $650-million Pulaski Solar Farm (405 MW) in Karnak, IL; and the $483-million Kelso Solar Farm (349 MW) in Blodgett, MO.