Total Construction Increase in January
Total construction starts increased 4 percent in January to a seasonally adjusted annual rate of $923.4 billion, according to Dodge Construction Network. Nonresidential building starts increased 4 percent.
Compared to one year ago, total construction was 8 percent higher in January 2022 than in January 2021. Nonresidential building starts were up 14 percent. For the 12 months ending January 2022, total construction starts were 13 percent above the 12 months ending January 2021. Nonresidential starts were 14 percent higher.
“Construction starts continue to climb, mostly unimpeded by rising materials prices and shortages of labor and key materials,” says Richard Branch, chief economist for Dodge Construction Network. “The number of projects in the planning pipeline suggests that the rising trend in construction should continue for the time being and will be spread across more sectors than last year. While the outlook is positive, the many challenges facing the sector will limit upside potential.”
Regionally, total construction starts in January rose in the Northeast, South Central and West, but fell in the Midwest and South Atlantic.
Below is the breakdown for construction starts
Nonresidential building starts rose 4 percent in January to a seasonally adjusted annual rate of $293.7 billion. The commercial sector moved 8 percent higher due to an increase in retail, office and warehouse starts. Institutional building starts gained 10 percent on gains in healthcare, transportation and recreation starts.
For the 12 months ending January 2022 nonresidential building starts were 14 percent higher than in the 12 months ending January 2021. Commercial starts were up 11 percent, institutional starts rose 8 percent, and manufacturing starts gained 82 percent on a 12-month rolling sum basis.
The largest nonresidential building projects to break ground in January were the $1.5 billion JFK Terminal 4 expansion in Queens, New York, the $647 million Rutgers Cancer Institute in New Brunswick, New Jersey, and the $550 million JM Smucker Uncrustables manufacturing facility in McCalla, Alabama.