Total construction starts slipped 2% in December to a seasonally adjusted annual rate of $1.2 trillion, according to Dodge Construction Network.
Residential groundbreakings rose 4%, buoyed by multifamily projects, while nonresidential starts ticked up 2%, driven by strength in manufacturing and commercial activity.
However, nonbuilding starts, such as highways, bridges and utility plants, dropped 14%, according to Dodge. That pulled down the overall total for the month.
“Rate cuts prior to December supported some momentum in multifamily and commercial starts over the month,” said Sarah Martin, associate director of forecasting at Dodge Construction Network. “Sustained labor shortages and elevated materials prices will continue to add risk to the sector, in addition to the concern over tariffs and more strict immigration enforcement.”
Nevertheless, Martin still expects project planning strength and further Federal Reserve rate cuts to encourage growth in construction in 2025.
Here are the nine largest U.S. projects to break ground in December:
- The $1.6 billion Lyndon B. Johnson Hospital replacement in Houston.
- The $1.2 billion San Antonio International Airport Terminal C development in Texas.
- The $1.1 billion Hard Rock Hotel in Las Vegas.
- The $740 million Donald C. Tillman Advanced Water Purification Facility in Los Angeles.
- The $650 million Pulaski Solar Farm in Karnak, Illinois.
- The $510 million St. Regis Residences development in Miami.
- The $483 million Kelso Solar Farm in Blodgett, Missouri.
- The $350 million Reflections Lakeside Resort in Orlando, Florida.
- The $210 million Ritz-Carlton Residences in The Woodlands, Texas.
YTD growth
Despite the December drop, total construction starts finished 2024 up 6% compared to 2023’s level of activity, according to Dodge.
During the year, nonresidential starts gained 4%, driven by a 16% increase in institutional projects, such as hospitals and education. Commercial starts, including offices, retail and warehouse, jumped 8%, while manufacturing starts finished the year down 35% compared to 2023.
Groundbreakings in both the nonbuilding and residential sectors increased 7% in 2024, according to the report.
On a monthly basis, nonresidential starts ticked up 2% in December due to increases in data center, hotel and retail starts. Manufacturing starts also gained 19% in December, according to Dodge.
Nonbuilding starts dropped 14% in December, while residential groundbreakings gained 4% during the final month of 2024, according to the report.
