Total Construction Starts Rose 10% in July to $1.1 Trillion

Bedford, MA, August 23, 2024-Total construction starts moved 10% higher in July to a seasonally adjusted annual rate of $1.1 trillion, according to Dodge Construction Network. Nonresidential buildings and infrastructure starts performed strongly during the month, countering a decline in residential starts. During the month, nonresidential buildings rose 25% and infrastructure starts increased by 19%. Residential starts fell 8% during the month. On a year-to-date basis through July, total construction starts were up 6% from the first seven months of 2023. Residential starts were up 11%, nonresidential buildings rose 5%, and nonbuilding starts were flat. 

For the 12 months ending July 2024, total construction starts were up 3% from the 12 months ending July 2023. Nonresidential building starts were down 1%, residential starts were up 7%, and nonbuilding starts were up 5% on a 12-month rolling sum basis.  

“Construction starts showed great promise in July,” said Richard Branch, chief economist of Dodge Construction Network. “However, the short-term remains questionable due to high interest rates. The Federal Reserve is likely to cut interest rates in September, which will, over time, make market conditions more conducive to moving projects forward. In the meantime, construction starts will likely remain volatile over the next few months.”