More shovels hit the ground on infrastructure jobsites in November, fueled by public dollars continuing to flow into environmental projects and state road improvements.
Total construction starts climbed 5% higher in November to a seasonally adjusted annual rate of $1.2 trillion, according to Dodge Construction Network. Nonbuilding activity, such as highways, bridges and utility plants, led the way with a 16% uptick, while nonresidential building starts gained 2%. Residential starts posted a 1% decline, continuing the sector’s recent pattern of modest fluctuations, according to the report.
“Construction starts continue to move sideways as the market waits for further rate cuts,” said Richard Branch, chief economist at Dodge Construction Construction Network. “Elevated interest rates, labor shortages and strict lending standards will continue to constrain construction activity in the near term.”
Dodge economists previously forecasted a pickup in activity next year, especially if the Federal Reserve implements more rate reductions. However, that dovish sentiment from the Fed may be changing after the central bank’s meeting on Dec. 18. While it issued its third cut of the year, it also said only two additional rate cuts were likely in 2025.
Here are the nine largest U.S. projects to break ground in November:
- The $3.4 billion Brooklyn detention facility in Boerum Hill, New York.
- The $2.9 billion Central Everglades reservoir embankment project in Palm Beach County, Florida.
- The $2 billion Bahia NGL Pipeline across several counties in Texas.
- The $1.4 billion SR 520, I-5 to Montlake bridge replacement in Seattle.
- The $1.4 billion Amazon data center in Ridgeland, Mississippi.
- The $750 million Frontier Scientific cold storage facility in Wilmington, North Carolina.
- The $675 million Utopia Living apartments in Flushing, New York.
- The $312 million Calyer Place residential building in Greenpoint, New York.
- The $235 million Hoboken Connect mixed-use development in Hoboken, New Jersey.
YTD growth
Total construction starts increased by 5% compared to the first 11 months of 2023, according to Dodge.
During that year-to-date span, nonresidential starts rose 4%, largely due to strong growth in the institutional sector, such as healthcare and education. Manufacturing activity, one of the largest sectors in nonresidential, slowed 33% compared to the first 11 months of 2023, according to Dodge.
Groundbreakings in the nonbuilding and residential sectors increased 5% and 7%, respectively during the year-to-date span, according to the report.
On a monthly basis, nonresidential starts jumped 2% in November, largely due to solid growth in data center, warehouse and parking garage construction. Manufacturing construction slowed in November, largely due to the sector’s large groundbreakings in October, according to Dodge.
Nonbuilding starts grew 16% in November, while residential groundbreakings fell 1%, according to the report.
