Total construction starts fell 18 percent in November to a seasonally adjusted annual rate of $926.3 billion, according to Dodge Construction Network. During the month, nonresidential building starts lost 25 percent, nonbuilding shed 21 percent and residential starts dropped five percent.
Year-to-date, total construction starts were 14 percent higher in the first 11 months of 2022 compared to the same period in 2021. Nonresidential building starts rose 36 percent over the year, residential starts were down one percent, and nonbuilding starts were up 16 percent.
What the experts say
“Month-to-month volatility in construction activity continues to reign supreme as uncertainty mounts over the economy in 2023,” says Richard Branch, chief economist for Dodge Construction Network. “Higher interest rates and fear of recession are first and foremost on the mind of most builders and developers, and potentially restraining starts activity. However, as some material prices head lower and more public dollars come into the market for infrastructure and manufacturing projects, the year is ending with a fair bit of momentum. Next year will be a challenge, but nothing like the sector faced during the Great Recession.”
