TWIA Commercial Property & Casualty
The 9 largest commercial construction starts for May 2024
Jun
Project groundbreakings continued with strong momentum in the spring after a slow start to the year, according to Dodge Construction Network.
Total construction starts jumped 10% to a seasonally adjusted annual rate of $1.24 trillion, according to Dodge Construction Network. The increase marks the second month of growth, and the largest increase of the year, said Richard Branch, chief economist for Dodge Construction Network.
That’s largely attributable to gains in the utilities, single-family, warehouse and education sectors, Branch said.
“Even though May’s gain in construction starts was mainly due to a handful of large projects, the data highlights that there is some grassroots demand building in the market,” said Branch. “Single-family starts, in particular, have risen in eight of the last 12 months despite high mortgage rates.”
That growth in single-family will incentivize further demand for retail, health and education starts, among others, said Branch. He added the stability in the Dodge Momentum Index, which tracks projects in planning, underscores this optimism.
Here are the top nine projects to break ground in May:
- The $11 billion trains 1 and 2 of the Port Arthur LNG project in Port Arthur, Texas.
- The $10 billion Dominion Energy offshore wind project off Virginia Beach, Virginia.
- The $2.1 billion Tennessee Titans football stadium in Nashville, Tennessee.
- The $1 billion Gotion EV battery plant in Manteno, Illinois.
- The $1 billion Green River Energy Center in Emery County, Utah.
- The $875 million General Motors Battery Cell factory in New Carlisle, Indiana.
- The $200 million Atlantic Club in Long Branch, New Jersey.
- The $150 million mixed-use project at 880 Atlantic Ave. in Prospect Heights, New York.
- The $150 million Tuscany at Gabriella Pointe in Gilbert, Arizona.
Starts remain in growth mode over past year
Over the 12 months ending in May 2024, total construction starts remain up 2% from the previous year, according to Dodge.
Nonresidential starts, which include retail, office and warehouse projects, decreased 7% during the past year, while groundbreakings in residential and nonbuilding, which include highway, street, bridge, gas plants and environmental public works, increased 5% and 14%, respectively.
Sector performance
Nonresidential building starts dropped 2% in May, due to a 14% decrease in manufacturing projects, said Branch, following strong growth in April. Institutional projects, such as healthcare, also dropped 6% in May. Year to date nonresidential starts increased by 3%, indicating moderate performance despite a challenging economic environment, according to the report.
Nonbuilding construction groundbreakings soared 49% in May, specifically due to the two multibillion dollar energy projects in Texas and Virginia. Over the first five months of 2024, nonbuilding starts improved 17% compared to the same period in 2023, largely due to growth in utility and gas projects.
Residential starts moved 7% lower in May, according to the report. Single-family starts inched up 2% during the month, while multifamily starts tumbled by 25%. However, despite the monthly decline, year to date residential groundbreakings jumped 16%, while single-family starts rose 29%, according to Dodge.
Stay Ahead in Construction: Essential Insights and Protection for Your Projects
The construction industry is the backbone of progress, constantly evolving and presenting new opportunities and challenges. As an investor, realtor, or lender in this vibrant sector, staying informed with the latest construction news is key to making smart decisions. Our blog, sourced from one of the top construction industry sites, is your gateway to staying ahead of the curve.
But what about protecting your investments and projects? Alongside these insights, we present our comprehensive Contractor Insurance Suite, designed to shield your construction projects from the unforeseen. From liability to property damage, our insurance solutions provide the security you need in an industry known for its unpredictability.
Whether you're breaking ground on a new project or managing ongoing developments, our insurance suite ensures that your financial interests are protected immediately. Discover how our tailored insurance products can be the cornerstone of your construction project's success.
Explore Contractor Insurance Solutions for Construction Success
This post was originally published on this site
