Total U.S. housing starts fell 5% in June, to a seasonally-adjusted annual rate of $932.3 billion, new data shows. Dodge Building Network.
Total construction (the total dollar value of a project is counted in the month it is launched), however, DCN pointed out, was nevertheless 5% higher in the first six months of 2022 compared to the same period of 2021.
Dodge also noted that “offshoring” is a trending topic in the construction industry and that housing starts are up 109% in the past 12 months ending June.
Notably, non-residential building starts fell 14% in June. This was more than offset, however, by a 13% increase in non-construction housing starts in June, including several large solar projects.
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Construction markets are getting jittery as recession risks rise, Richard Branch, chief economist for Dodge Construction Network, said in a prepared statement.
“While projects are still being planned,” he continued, “speed has slowed, reflecting uncertainties about the impact of rising interest rates on the economy, commodity prices building materials and ultimately the beginnings of construction In the near term, construction-related indicators are likely to be more volatile than normal, particularly in the commercial sector.
Blips or trends?
Year-to-date, total construction is up 5% in the first six months of 2022 compared to the same period in 2021. Similarly, for the 12 months ending June 2022, total bets under construction was 7% higher than the 12 months ending in June 2021. .
Non-residential building starts fell 14% in June to a seasonally adjusted annual rate of $301.0 billion. Within this category, the decline was widespread. Commercial housing starts fell 16%, manufacturing starts 14% and institutional starts 12%.
In the first six months of this year, non-residential building starts increased by 13% compared to the first six months of 2021. Commercial housing starts increased by 14% and institutional housing starts increased by 1%, while manufacturing housing starts increased by 83% year-on-year. up to date.
Among the largest nonresidential construction projects to start in June was an $800 million Facebook data center in Los Lunas, NM.
Residential housing starts fell 6% in June to a seasonally adjusted annual rate of $428.3 billion. Within this, multi-family housing starts were 3% lower, although they were up 23% in the first half, compared to the first six months of 2021.
The largest multi-family structures to open in June were the $450 million Neptune/Sixth mixed-use project in Brooklyn, the $425 million apartments at 250 Water Street in New York City, and the 5th & $369 million Colorado in Austin, Texas.
Read the full report from Dodge Construction Network.