Institutional planning drives monthly gains

BOSTON, MA – June 6, 2025 — The Dodge Momentum Index (DMI), issued by Dodge Construction Network, grew 3.7% in May to 211.2 (2000=100) from the downwardly revised April reading of 203.5. Over the month, commercial planning grew 0.8% while institutional planning improved 10.5%.

“Nonresidential planning continued to accelerate in May, primarily driven by strong project activity on the institutional side of the DMI,” stated Sarah Martin, associate director of forecasting at Dodge Construction Network. “Planning momentum moderately improved on the commercial side as well, following subdued growth in that sector over the last few months – outside of data centers. Increased economic and policy uncertainty will continue to contribute to heightened volatility in the project data – but in aggregate, planning activity is on steady footing.”

After a very strong April, data center projects returned to more typical levels in May and constrained overall commercial planning. Without data center projects, the commercial portion of the DMI would have improved 5% and the entire DMI would have grown 7% over the month. Accelerated warehouse and hotel planning drove the commercial portion of the Index, while office and retail planning remained flat. On the institutional side, a strong uptick in education and recreational projects drove this month’s gains, partially offset by a mild slowdown in healthcare planning.

In May, the DMI was up 24% when compared to year-ago levels. The commercial segment was up 15% from May 2024, and the institutional segment was up 47% after a weak May last year. If all data center projects between 2023 and 2025 are excluded, commercial planning would be up 4% from year-ago levels and the entire DMI would be up 17%.

A total of 33 projects valued at $100 million or more entered planning throughout May. The largest commercial projects included the $486 million Evolve Energy Partners Data Center in Warrenton, Missouri, the $366 million LEGO Warehouse and Distribution Facility in Prince George, Virginia, and the $330 million Summit Crossing Data Center (Building 2) in Fredericksburg, Virginia. The largest institutional projects to enter planning were the $500 million renovations to the Honda Center in Anaheim, California, the $238 million phase 2 of the Sterling Bay Pacific Center research and development building in San Diego, California, and the $201 million patient tower at Berkeley Medical Center in Martinsburg, West Virginia.

The DMI is a monthly measure of the value of nonresidential building projects going into planning, shown to lead construction spending for nonresidential buildings by a full year.

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Growth in select sectors offers a counterpoint to April’s slowdown. 

BOSTON, MA — May 21, 2025 — Total construction starts were down 9% in April to a seasonally adjusted annual rate of $1.03 trillion, according to Dodge Construction Network. Nonresidential building starts declined 3%, residential starts fell 4%, while nonbuilding starts decreased 22%. On a year-to-date basis through April, total construction starts were down 3% from last year. Nonresidential starts were down 10%, residential starts were down 5%, and nonbuilding starts were up by 8% over the same period. 

For the 12 months ending April 2025, total construction starts were up 2% from the 12 months ending April 2024. Residential starts were flat, nonresidential starts were up 1%, and nonbuilding starts rose 5% over the same period.  

“Broad-based monthly declines in construction starts represent a troubling signal for the sector,” stated Eric Gaus, chief economist at Dodge Construction Network. “While not definitive, the slowdown in April aligns with delays in the planning pipeline and other economic data that capture the volatility and uncertainty of all the April tariff announcements. Uncertainty around trade policy and the economy’s direction will continue to weigh on construction activity in the coming months.” 

Nonbuilding

Nonbuilding construction starts fell 22% in April to a seasonally adjusted annual rate of $279 billion. Highway and bridge starts decreased 8%, environmental public works fell back 2%, and utility starts were down 70% last month. Meanwhile, miscellaneous nonbuilding starts were up a strong 57% in April. On a year-to-date basis through April, nonbuilding starts were up 8%, with utility/gas starts up 37%, miscellaneous nonbuilding up 5%, highway and bridge starts up 7%, and environmental public work starts down 7% over the same period.  

For the 12 months ending April 2025, total nonbuilding starts were up 5%. Environmental public works improved 13% compared to the 12 months ending April 2024. Highway and bridge starts were up 4%, miscellaneous nonbuilding starts were up 16%, and utility/gas starts were down 6% over the same period.   

The largest nonbuilding projects to break ground in April were the $1.8 billion Hudson Tunnel Project (Manhattan Tunnel) in New York, New York, the $775 million West Alabama Highway project in Thomasville, Alabama, and the $365 million Carpenter Wind farm (200 MW) in Carpenter Township, Indiana.  

Nonresidential 

Nonresidential building starts receded 3% in April to a seasonally adjusted annual rate of $391 billion. Commercial starts were 21% lower in April, alongside weaker retail, office, and warehouse starts. Institutional starts, on the other hand, were up 2% last month following stronger healthcare and education starts. Manufacturing starts grew 78% over the month, as well. On a year-to-date basis through April, nonresidential starts are down 10% compared to April 2024. Commercial starts are up 3% and institutional starts are down 4% over the same period.  

For the 12 months ending April 2025, total nonresidential starts were up 1% compared to the 12 months ending April 2024. Commercial starts were up 12%, institutional starts improved 9%, and manufacturing starts were down 46% over the same period.  

The largest nonresidential building projects to break ground in April were the $1 billion Kaiser Permanente Medical Center in Sacramento, California, the $940 million Bally’s River West Hotel and Casino in Chicago, Illinois and two buildings for the GM & Samsung SDI Battery Cell Factory in New Carlisle, Indiana – valued at $855 million and $875 million respectively.  

Residential 

Residential building starts fell 4% in April to a seasonally adjusted annual rate of $360 billion. Single-family starts decreased by 5%, while multifamily starts receded 3%. On a year-to-date basis through April, residential starts are down 5%, with single-family starts down 6% and multifamily starts down 4%.  

For the 12 months ending April 2025, total residential starts were flat. Single-family starts were up 3% and multifamily starts were down 7% compared to the 12 months ending April 2024.  

The largest multifamily structures to break ground in April were a $331 million residential and retail development in Jersey City, New Jersey, the $256 million Vista Point apartments at Fairview Life Care Community in Groton, Connecticut, and the $226 million Rambler Riverfront District apartments in West Lafayette, Indiana.  

Regionally, total construction starts in April rose in the Midwest, and declined in the Northeast, South Atlantic, South Central, and West.

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Data center surge offsets weakness in other categories.

BOSTON, MA – May 7, 2025 — The Dodge Momentum Index (DMI), issued by Dodge Construction Network, grew 0.9% in April to 205.1 (2000=100) from the downwardly revised March reading of 203.1. Over the month, commercial planning grew 3.3% while institutional planning fell 4.2%. 

“Despite an uptick in April, the bulk of the DMI’s growth was driven by a surge in data center planning, while momentum in other nonresidential sectors lagged behind,” stated Sarah Martin, associate director of forecasting at Dodge Construction Network. “Owners and developers are navigating heightened economic and policy uncertainty, which likely bogged down much of this month’s planning activity.”  

A wave of data center projects entering planning played a key role in boosting commercial growth. Without data centers, commercial planning would have receded 2.3% in April and the entire DMI would have receded 3.0%. Office and hotel planning saw a sharp retreat this month, while warehouse and retail planning modestly ticked up. On the institutional side, planning momentum waned for education, healthcare, and government buildings. This was slightly offset by an uptick in recreational projects.  

In April, the DMI was up 22% when compared to year-ago levels. The commercial segment was up 20% from April 2024, and the institutional segment was up 26% after a weak April last year. If we remove all data center projects between 2023 and 2025, commercial planning would be down 1% from year-ago levels and the entire DMI would be up 7%.  

 A total of 40 projects valued at $100 million or more entered planning throughout April. The largest commercial projects included the TA Realty LLC Data Center campus in Dulles, Virginia – which includes five data centers, each valued at $384 million. It also included the $350 million QTS Data Center DFW2-DC3 in Lancaster, Texas and the Powhatan Data Center Campus in Powhatan, Virginia – which includes three data centers, each valued at $300 million. The largest institutional projects to enter planning were the $493 million Revere High School in Revere, Massachusetts, the $230 million Kaiser Permanente Sunnyside Medical Center Hospital Tower in Clackamas, Oregon, and the $203 million Kailua-Kona Hospital in Kaiminani, Hawaii.  

The DMI is a monthly measure of the value of nonresidential building projects going into planning, shown to lead construction spending for nonresidential buildings by a full year. 

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Nonresidential and nonbuilding activity drove growth.

BOSTON, MA — April 21, 2025 — Total construction starts were up 3% in March to a seasonally adjusted annual rate of $1.1 trillion, according to Dodge Construction Network. Nonresidential building starts grew 6%, residential starts decreased 5%, while nonbuilding starts increased 9%. On a year-to-date basis through March, total construction starts were down 1% from last year. Nonresidential starts were down 9%, residential starts were down 5%, and nonbuilding starts were up by 16% over the same period. 

For the 12 months ending March 2025, total construction starts were up 4% from the 12 months ending March 2024. Residential starts were up 2%, nonresidential starts were up 3%, and nonbuilding starts rose 8% over the same period.  

“Construction activity grew over the month, but sector-specific data continued to show mixed trends,” stated Eric Gaus, chief economist at Dodge Construction Network. “Looking ahead, growing uncertainty around trade policy and the direction of the economy will likely weigh on construction activity. Rising delays in the planning pipeline suggest that developers are already bracing for impact, grappling with higher tariffs, dwindling federal funding, and ongoing labor shortages. We expect headwinds to grow as long as the uncertainty remains.” 

Nonbuilding

Nonbuilding construction starts grew 9% in March to a seasonally adjusted annual rate of $361 billion. Highway and bridge starts decreased 10%, environmental public works fell back 26%, and miscellaneous nonbuilding starts were down 23% last month. Meanwhile, utility/gas starts were up a strong 159% in March. On a year-to-date basis through March, nonbuilding starts were up 16% in March, with utility/gas starts up 66%, miscellaneous nonbuilding down 5%, highway and bridge starts up 13%, and environmental public work starts up 1% over the same period.  

For the 12 months ending March 2025, total nonbuilding starts were up 8%. Environmental public works led the way, improving 19% compared to the 12 months ending March 2024. Highway and bridge starts were up 6%, miscellaneous nonbuilding starts were up 17%, and utility/gas starts were down 5% over the same period.   

The largest nonbuilding projects to break ground in March were the $3.5 billion Sunrise Offshore Wind Farm (924 MW) in Montauk, New York, the $2.1 billion Greenlink West Transmission Line in Yerrington, Nevada, and the $756 million Rail Tie Wind project in Tie Siding, Wyoming.  

Nonresidential 

Nonresidential building starts improved 6% in March to a seasonally adjusted annual rate of $403 billion. Commercial starts were 21% higher in March, alongside stronger retail, office and warehouse starts. Institutional starts, on the other hand, were down 12% in March following weaker dormitory, government building, and transportation starts. Manufacturing starts grew 122% over the month. On a year-to-date basis through March, nonresidential starts are down 9% compared to March 2024. Commercial and institutional starts are up 3% over the same period.  

For the 12 months ending March 2025, total nonresidential starts were up 3% compared to the 12 months ending March 2024. Commercial starts were up 11%, institutional starts improved 15%, and manufacturing starts were down 44% over the same period.  

The largest nonresidential building projects to break ground in March were the $1 billion Johnson & Johnson Biologics Manufacturing Facility in Wilson, North Carolina, the $800 million Capital One Arena Modernization in Washington, D.C., and the $750 million Amazon Robotics Fulfillment Center in Wilmington, North Carolina.  

Residential 

Residential building starts fell 5% in March to a seasonally adjusted annual rate of $377 billion. Single-family starts decreased by 10%, while multifamily starts increased by 4%. On a year-to-date basis through March, residential starts are down 5% when compared to March 2024, with single-family starts down 4% and multifamily starts down 6%.  

For the 12 months ending March 2025, total residential starts were up 2%. Single-family starts were up 7% and multifamily starts were down 8% compared to the 12 months ending March 2024.  

The largest multifamily structures to break ground in March were the $1 billion Four Seasons Private Residences Las Vegas in Henderson, Nevada, the $357 million Flatiron Building Condominiums in New York, NY, and the $276 million The Villa Miami Condominiums in Miami, Florida.   

Regionally, total construction starts in March rose in the Northeast, South Centra,l and West, remained flat in the Midwest, and declined in the South Atlantic.

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Most nonresidential sectors faced slower planning over the month 

BOSTON, MA – April 9, 2025 — The Dodge Momentum Index (DMI), issued by Dodge Construction Network, receded 6.9% in March to 205.6 (2000=100) from the revised February reading of 220.9. Over the month, commercial planning declined 7.8% while institutional planning fell 5.0%.  

“Increased uncertainty around material prices and fiscal policies may have begun to factor into planning decisions throughout March,” stated Sarah Martin, associate director of forecasting at Dodge Construction Network. “While planning data has weakened across most nonresidential sectors this month, activity remains considerably higher than year-ago levels and still suggests steady construction activity in mid-2026.”  

On the commercial side, weaker planning activity for warehouses, data centers and retail stores drove this month’s decline. Meanwhile, hotel and office planning continued to accelerate. On the institutional side, planning activity slowed for education, healthcare and government buildings. In March, the DMI was up 30% when compared to year-ago levels. The commercial segment was up 32% from March 2024. The institutional segment was up 27% over the same period, following a very weak March last year. The influence of data centers on the DMI this year remains substantial. If we remove all data center projects between 2023 and 2025, commercial planning would be up 4% from year-ago levels, and the entire DMI would be up 12%. While momentum decelerated for data centers this month, levels of activity remain very high.  

A total of 25 projects valued at $100 million or more entered planning throughout March. The largest commercial projects included the $400 million Logistics Land Investments Data Center in Bessemer, Alabama, the $340 million expansion to the Ontario Convention Center and Hotel in Ontario, California, and the $300 million Project Cinco Data Center (300 MW) in Natalia, Texas. The largest institutional projects to enter planning were the $500 million ambulatory care building at Scripps San Marcos Medical Center, the $165 million Roanoke High School in Roanoke, Virginia and the $135 million Milken Community School expansion in Los Angeles, California.  

The DMI is a monthly measure of the value of nonresidential building projects going into planning, shown to lead construction spending for nonresidential buildings by a full year. 

The post Dodge Momentum Index Declines 7% in March appeared first on Dodge Construction Network.

Growth in some sectors offset weakness in others.

BOSTON, MA — March 24, 2025 — Total construction starts were up 0.5% in February to a seasonally adjusted annual rate of $1.1 trillion, according to Dodge Construction Network. Nonresidential building starts grew 2%, residential starts decreased 1%, while nonbuilding starts were unchanged. On a year-to-date basis through February, total construction starts were down 2% from last year. Nonresidential starts were down 14%, residential starts were down 3% and nonbuilding starts were up by 16% over the same period. 

For the 12 months ending February 2025, total construction starts were up 3% from the 12 months ending February 2024. Residential starts were up 3%, nonresidential starts were flat, and nonbuilding starts rose 7% over the same period.  

“While increased uncertainty over the trajectory of monetary and fiscal policies may be informing some of the flat month-to-month trends – the largest construction sectors still saw growth in activity throughout February,” stated Sarah Martin, associate director of forecasting at Dodge Construction Network. “Steady growth in planning activity throughout 2024 should support stronger construction starts in future months – but owners and developers will have to factor in higher risk around elevated material costs, supply chain volatility and further labor constraints.” 

Nonbuilding 

Nonbuilding construction starts were flat in February at a seasonally adjusted annual rate of $334 billion. Highway and bridge starts and environmental public works both increased 8% but utility/gas starts were down 21% and miscellaneous nonbuilding starts receded 10% over the month. On a year-to-date basis through February, nonbuilding starts were up 16% in February – with utility/gas starts up 68%, miscellaneous nonbuilding down 5%, highway and bridge starts up 20%, and environmental public work starts up 1% over the same period.  

For the 12 months ending February 2025, total nonbuilding starts were up 7%. Environmental public works led the way, improving 18% compared to the 12 months ending February 2024. Highway and bridge starts were up 7%, miscellaneous nonbuilding starts were up 16% and utility/gas starts were down 7% over the same period.  

The largest nonbuilding projects to break ground in February were the $1.4 billion road work on the Westshore Interchange in Tampa, Florida, the $1.1 billion Kensico-Eastview Connection Tunnel and Shafts in Valhalla, New York and the $1.0 billion Aratina Solar farm in Boron, California.  

Nonresidential 

Nonresidential building starts improved 2% in February to a seasonally adjusted annual rate of $402 billion. Commercial starts were 22% higher in February, alongside strong office, hotel, and parking garage starts. Institutional starts, on the other hand, were down 2% in February following weaker healthcare activity after a multi-billion-dollar hospital started in January. Manufacturing starts fell 48% over the month. On a year-to-date basis through February, nonresidential starts are down 14% compared to February 2024. Commercial starts are down 8% and institutional starts are up 11% over the same period.  

For the 12 months ending February 2025, total nonresidential starts were flat compared to the 12 months ending February 2024. Commercial starts were up 7%, institutional starts improved 15%, and manufacturing starts were down 51% over the same period.  

The largest nonresidential building projects to break ground in February were the $1.8 billion terminal at John Glenn Columbus Airport in Columbus, Ohio, the $1.5 billion Lyndon B. Johnson Hospital replacement in Houston, Texas and the $1.45 billion renovations to the Jacksonville Jaguars EverBank Stadium in Jacksonville, Florida.  

Residential 

Residential building starts fell 1% in February to a seasonally adjusted annual rate of $401 billion. Single family starts increased by 1%, while multifamily starts fell back 6%. On a year-to-date basis through February, residential starts are down 3% when compared to February 2024 – with single family starts up 2% and multifamily starts down 11%.  

For the 12 months ending February 2025, total residential starts were up 3% – while single family starts were up 11% and multifamily starts were down 11% compared to the 12 months ending February 2024.  

The largest multifamily structures to break ground in February were the $478 million condominiums at The Residences at 1428 Brickell in Miami, Florida, the $335 million Highbridge Apartment Building in Highbridge, New York and the $265 million Tower 2 at The Standard Residences Brickell in Miami, Florida.  

Regionally, total construction starts in February rose in the Northeast, Midwest, South Atlantic and West, but fell in the South Central.   

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Planning activity flattens over the month.

BOSTON, M.A. – March 12, 2025 — The Dodge Momentum Index (DMI), issued by Dodge Construction Network, grew 0.7% in February to 225.6 (2000=100) from the revised January reading of 223.9. Over the month, commercial planning increased 3.3% while institutional planning fell 4.6%.  

“Planning momentum moderated in February, after a few months of stronger growth,” stated Sarah Martin, associate director of forecasting at Dodge Construction Network. “Data centers continue to prop up growth in the overall index. Without them, the DMI would have decreased 2% this month. Increased uncertainty around material prices and fiscal policies may begin to weigh on planning decisions, but for the time being, planning activity is largely continuing to move forward.”  

On the commercial side, data center, traditional office building, and retail planning led this month’s gains, while weaker education planning brought down the institutional portion. In February, the DMI was up 27% when compared to year-ago levels. The commercial segment was up 43% from February 2024, while the institutional segment was up 2% over the same period. The influence of data centers on the DMI this year remains substantial. If we remove all data center projects between 2023 and 2025, commercial planning would be up 12% from year-ago levels, and the entire DMI would be up 8%.  

A total of 26 projects valued at $100 million or more entered planning throughout February. The largest commercial projects included the $500 million Tract Data Center Park in Chester, Virginia, and the SAT93 and SAT94 Microsoft Data Center projects in San Antonio, Texas – each valued at $350 million. The largest institutional projects to enter planning were the $329 million Burlington High School in Burlington, Massachusetts, the $300 million T-Mobile Arena renovation in Las Vegas, Nevada, and the $300 million North Dakota State Hospital in Jamestown, North Dakota.  

The DMI is a monthly measure of the value of nonresidential building projects going into planning, shown to lead construction spending for nonresidential buildings by a full year. 

The post Dodge Momentum Index Grows 1% in February appeared first on Dodge Construction Network.

Nonresidential starts largely paused over the month

BOSTON, MA — February 21, 2025 — Total construction starts fell 6% in January to a seasonally adjusted annual rate of $1.1 trillion, according to Dodge Construction Network. Nonresidential building starts receded 18%, residential starts decreased 1%, while nonbuilding starts moved 4% higher. On a year-over-year basis, total construction starts were down 6% from January 2024. Nonresidential starts were down 22%, residential starts were down 2% and nonbuilding starts were up by 17% over the same period. 

For the 12 months ending January 2025, total construction starts were up 4% from the 12 months ending January 2024. Residential starts were up 5%, nonresidential starts were flat, and nonbuilding starts rose 7% over the same period.  

“After robust data center starts in November and December, total office starts fell back in January to more historically typical levels and drove a sizable piece of the month-to-month decline,” stated Sarah Martin, associate director of forecasting at Dodge Construction Network. “However, most nonresidential sectors saw weakness over the month. Ongoing labor shortages and high material costs will continue to pose risks to the sector, along with concerns over tariffs and stricter immigration enforcement. Projects are likely to continue moving through the planning queue slowly, until the Federal Reserve resumes cutting rates in the back half of the year.” 

Nonbuilding

Nonbuilding construction improved 4% in January to a seasonally adjusted annual rate of $337 billion. Highway and bridge starts rose 14%, miscellaneous nonbuilding starts were up 26%, and utility/gas starts improved 1% over the month. Meanwhile, environmental public works fell 14%. On a year-over-year basis, nonbuilding starts were up 17% – with utility/gas starts up 84%, miscellaneous nonbuilding up 25%, highway and bridge starts up 10%, and environmental public work starts flat compared to January 2024.  

For the 12 months ending January 2025, total nonbuilding starts were up 7%.  

Miscellaneous nonbuilding starts led the way, improving 26% compared to the 12 months ending January 2024. Environmental public works were up 21%, highway and bridge starts were up 5%, and utility/gas starts were down 11% over the same period.  

The largest nonbuilding projects to break ground in January were the $1.1 billion Sequoia Solar Farm (815 MW) in Callahan County, Texas, the $696 million NHHIP Segment 3B-2 road widening project in Houston, Texas and phase two of the Beaver Stadium renovations, valued at $630 million, in University Park, Pennsylvania.  

Nonresidential 

Nonresidential building starts receded 18% in January to a seasonally adjusted annual rate of $393 billion. Commercial starts were 41% lower in January, alongside weak office and hotel starts. Institutional starts, on the other hand, were up 4% in January following growth in healthcare and recreational projects. Manufacturing starts fell 16% over the month. On a year-over-year basis, nonresidential starts are down 22% compared to January 2024. Commercial starts are down 18% and institutional starts are down 1% over the same period.  

For the 12 months ending January 2025, total nonresidential starts were flat compared to the 12 months ending January 2024. Commercial starts were up 7%, institutional starts improved 13%, and manufacturing starts were down 45% over the same period.  

The largest nonresidential building projects to break ground in January were the $5 billion Children’s Health & UTSW New Pediatric Campus in Dallas, Texas, the $333 million Mid-Hudson Forensic Psychiatric Hospital in New Hamptom, New York and the $307 million Timber Mill High School and Athletic Field in Conroe, Texas.  

Residential 

Residential building starts fell 1% in January to a seasonally adjusted annual rate of $407 billion. Single-family starts fell 2%, while multifamily starts improved 2%. On a year-over-year basis, residential starts are down 2% compared to January 2024, with single–family starts up 6% and multifamily starts down 15%.  

For the 12 months ending January 2025, total residential starts were up 5%, while single-family starts were up 14%, and multifamily starts were down 10% compared to the 12 months ending January 2024.  

The largest multifamily structures to break ground in January were the $470 million Ulana Ward Village Tower Building in Honolulu, Hawaii, the $400 million JEM residences at Miami World Center in Miami, Florida, and the $279 million Alafia Affordable Apartments in Spring Creek, New York.  

Regionally, total construction starts in January rose in the Northeast and South Central, but fell in the Midwest, South Atlantic, and West.   

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Planning activity sees widespread growth over the month.

BOSTON, M.A. – February 7, 2025 — The Dodge Momentum Index (DMI), issued by Dodge Construction Network, grew 5.6% in January to 225.7 (2000=100) from the revised December reading of 213.6. Over the month, commercial planning increased 4.2% while institutional planning improved 8.7%.  

“Nonresidential planning activity saw diversified growth in January, with every vertical experiencing positive momentum,” stated Sarah Martin, associate director of forecasting at Dodge Construction Network. “Uncertainty over fiscal policies, ongoing labor shortages and elevated construction costs will continue to be headwinds to the construction sector. However, further monetary easing and the sizable number of projects in planning should support construction spending in the back half of the year.” 

On the commercial side, data center, traditional office building, and warehouse planning led this month’s gains. Education and healthcare planning supported the institutional portion, especially on the hospital side. In January, the DMI was up 26% when compared to year-ago levels. The commercial segment was up 37% from January 2024, while the institutional segment was up 9% over the same period. The influence of data centers on the DMI this year remains substantial. If we remove all data center projects between 2023 and 2025, commercial planning would be up 13% from year-ago levels, and the entire DMI would be up 11%. 

A total of 33 projects valued at $100 million or more entered planning throughout January. The largest commercial projects included the $500 million Amazon Data Center in Jeffersonville, Ohio, and Phase 1 of the Hunter’s Ridge Data Center in Mclean, Virginia. The largest institutional projects to enter planning were the $407 million Memorial Hospital expansion in Colorado Springs, Colorado and the $300 million AdventHealth Hospital expansion in Parker, Colorado.    

The DMI is a monthly measure of the value of nonresidential building projects going into planning, shown to lead construction spending for nonresidential buildings by a full year. 

The post Dodge Momentum Index Grows 6% in January appeared first on Dodge Construction Network.

Nonbuilding Starts Led This Month’s Decline

BOSTON, MA — January 21, 2024 — Total construction starts decreased 2% in December to a seasonally adjusted annual rate of $1.2 trillion, according to Dodge Construction Network. Nonresidential building starts grew 2%, nonbuilding starts moved 14% lower, while residential building starts grew 4%. On a year-to-date basis through December, total construction starts were up 6% from 2023. Nonresidential starts were up 4%, residential starts were up 7% and nonbuilding starts were up by 7%. 

For the 12 months ending December 2024, total construction starts were up 6% from the 12 months ending December 2023. Residential starts were up 7%, nonresidential starts were up 4% and nonbuilding starts rose 7% over the same period.  

“Rate cuts prior to December supported some momentum in multifamily and commercial starts over the month,” stated 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. Overall, the strength in the value of projects in planning and further Fed rate cuts should encourage growth in construction in 2025.” 

Nonbuilding

Nonbuilding construction declined 14% in December to a seasonally adjusted annual rate of $322 billion. Environmental public works starts receded 18%, while utility/gas starts moved 1% higher, and miscellaneous nonbuilding starts fell 36%. Highway and bridge starts dropped 5% in December.  In 2024, total nonbuilding starts were 7% higher when compared to a year ago. Miscellaneous nonbuilding starts were up 26%, environmental public works starts were 24% higher, and highway and bridge starts improved by 6%, but utility/gas starts were down 14% through December.   

The largest nonbuilding projects to break ground in December were the $740 million Donald C. Tillman Advanced Water Purification Facility in Los Angeles, California, the $650 million Pulaski Solar Farm (405 MW) in Karnak, Illinois, and the $483 million Kelso Solar Farm (349 MW) in Blodgett, Missouri.   

Nonresidential 

Nonresidential building starts rose 2% in December to a seasonally adjusted annual rate of $482 billion. Commercial starts were 6% higher during the month thanks to an increase in data center, hotel, and retail starts, while institutional starts fell 3%. Manufacturing starts rose 19% over the month. In 2024, total nonresidential starts were up 4%. Institutional starts were 16% higher, while commercial starts were up 8%, and manufacturing starts were 35% lower on a year-to-date basis through December.

The largest nonresidential building projects to break ground in December were the $1.6 billion Lyndon B. Johnson Hospital Replacement in Houston, Texas, the $1.2 billion San Antonio International Airport Terminal C Development in San Antonio, Texas and the $1.1 billion Hard Rock Hotel in Las Vegas, Nevada.     

Residential 

Residential building starts grew 4% in December to a seasonally adjusted annual rate of $397 billion. Single-family starts fell 3%, while multifamily starts were up 24%. In 2024, total residential starts were 7% higher. Single-family starts increased 15%, and multifamily starts were down 7% on a year-to-date basis through December.  

The largest multifamily structures to break ground in December were the $510 million St. Regis Residences development in Miami, Florida, the $350 million Reflections Lakeside Resort in Orlando, Florida and the $210 million Ritz-Carlton Residences in The Woodlands, Texas.  

Regionally, total construction starts in December rose in the Midwest and South Atlantic regions, but fell in the Northeast, South Central, and West regions.  

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