Overall new construction starts decreased 4% from September to October, down to a seasonally-adjusted annual rate of $678.9 billion, Dodge Data & Analytics reports.
The nonresidential building sector, which fell 16% month-over-month, accounts for most of this overall drop. Residential construction starts grew 6% in October, with a 6% increase in single-family housing starts following a 3% decline in September. Increases in single-family starts were observed across all U.S. regions: South Central starts rose by 10%, Midwest starts rose 9%, the Northeast rose 6%, the West 4%, and the South Atlantic 3%.
Eleven multifamily projects valued at or over $100 million broke ground in October, almost twice the number that started in September. New York, Los Angeles, Miami, Chicago, and Washington, D.C. were the most active multifamily markets in the first ten months of 2016, based on the value of their multifamily starts.
“After a sluggish second quarter, the pace of construction starts picked up during the third quarter, and on this basis October is at least maintaining recent improvement,” stated Robert A. Murray, Dodge Data & Analytics chief economist. “While there was concern earlier in 2016 that the often hesitant expansion for construction could be stalling, the generally stronger activity in August, September, and now October eases those concerns. Furthermore, the year-to-date comparisons have strengthened as 2016 has proceeded, with total construction starts now down just 1% through the first ten months of this year.”
Residential building starts have risen by 5% this year to date, while single-family housing starts are up 7% and multifamily starts are up by 1%.
