Total construction starts fell 9% in June to a seasonally adjusted annual rate of $1 trillion, according to Dodge Construction Network. Non-residential starts led the downturn, falling 14%. Non-building starts fell 9%, and residential starts lost 4%.
A closer look
Year-to-date through June 2023, total construction starts were 5% below that of 2022. While residential and non-residential starts were down 24% and 2%, respectively, non-building starts gained 29%. For the 12 months ending June 2023, total construction starts were 9% higher than that of 2022. Non-building starts were 34% higher, and non-residential building starts gained 25%. However, on a 12-month rolling basis, residential starts posted a 17% decline overall.
Dodge's perspective
“Construction starts are oscillating, up one month and down the next,” says Richard Branch, chief economist, Dodge Construction Network. “The presence, or absence, of mega-projects is a key influencer in this trend. Nevertheless, high interest rates and tightening lending standards are leading to uncertainty among owners and developers, also creating hesitation among stakeholders, leading them to carefully assess whether projects will break ground. These conditions will persist through the remainder of the year—meaning little forward motion in construction starts.”
