Construction started up 6% in April, driven by strong gains in the manufacturing and institutional sectors | News

Total construction starts in America rose 6% to a seasonally adjusted rate of $1.13 trillion in April, according to the latest data from the Dodge Construction Network’s monthly report. During the month, the number of non-residential building starts increased by 17%. Non-construction starts were 4% higher, while residential starts were down 1%.

The new Construction Starts Index report notes that year-over-year, total construction starts are up 13% compared to the first four months of 2023. Residential starts are up 22%, non-construction starts are up 14% and construction starts of non-residential buildings increased by 5%.

“The rebound in starts in April was certainly good news for the sector,” explained Richard Branch, chief economist for Dodge Construction Network. “While the uncertain timing of Fed rate cuts is a concern, developers and owners are reasonably confident that end-market demand will sustain project starts in some sectors. While risks remain in the sector in terms of interest rates, labor and material prices, the value of projects in the pipeline is relatively stable, indicating future confidence.”

The largest non-construction project to break ground this month was an $834 million highway improvement project in Washington state. The largest nonresidential project was the new $3.7 billion UC Davis Medical Center project in Sacramento, and the largest residential project was a $300 million multifamily project in Massachusetts.

Regionally, total housing starts in April increased in all five regions.