Total construction starts fell 15 percent in November, dropping to a seasonally adjusted annual rate of $927 billion, according to Dodge Construction Network. Nonresidential building starts fell 29 percent during the month, residential starts declined 6 percent, and nonbuilding starts dropped 2 percent.
Year-to-date through November 2023, total construction starts lagged by 4 percent compared with the previous year. Residential and nonresidential starts were down 14 percent and 7 percent, respectively, but nonbuilding starts were up 19 percent.
“Construction starts are deeply feeling the impact of higher rates,” said Richard Branch, chief economist for Dodge Construction Network. “While the Federal Reserve see
