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.