Total Construction Starts Increase in February, Rising in Midwest, South Atlantic, and Western U.S.

Total construction starts rose nine percent in February to a seasonally adjusted annual rate of $1.013 trillion, according to Dodge Construction Network. Nonresidential building starts swelled 32 percent due to the start of three large manufacturing facilities. 

Year-to-date, total construction was 14 percent higher in the first two months of 2022 than in the same period of 2021. Nonresidential building starts jumped 39 percent. For the 12 months ending February 2022, total construction starts were 16 percent above the 12 months ending February 2021. Nonresidential starts were 23 percent higher.

“The manufacturing sector has been an important success story for construction since the pandemic began,” stated Richard Branch, chief economist for Dodge Construction Network. “Domestic producers are expected to seek more control over their supply chains in the future, so that aspect of construction should continue to flourish. However, as evident in February’s data, other sectors are struggling to gain traction in the face of high material prices and worker shortages. The conflict in Ukraine will continue to put upward pressure on costs, making the sector’s recovery more tenuous in 2022.”
 

The largest multifamily structures to break ground in February were the $400 million 400 Central condos in St. Petersburg, Florida, the $220 million Journal Squared apartments in Jersey City, New Jersey, and the $147 million Miami World Tower building in Miami, Florida.

Regionally, total construction starts in February rose in the Midwest, South Atlantic and West regions, but fell in the Northeast and South Central U.S.