{"id":2798,"date":"2021-07-20T10:04:27","date_gmt":"2021-07-20T14:04:27","guid":{"rendered":"https:\/\/www.construction.com\/newsroom_details_pag\/total-construction-starts-slip-in-june-2021\/"},"modified":"2025-10-14T05:30:57","modified_gmt":"2025-10-14T09:30:57","slug":"total-construction-starts-slip-in-june-2021","status":"publish","type":"post","link":"https:\/\/www.construction.com\/total-construction-starts\/total-construction-starts-slip-in-june-2021\/","title":{"rendered":"Total Construction Starts Slip in June"},"content":{"rendered":"<p><em><strong>Higher materials prices are weighing heavily on single family construction<\/strong><\/em><\/p>\n<h4><strong>HAMILTON, New Jersey \u2014 July 20, 2021 \u2014<\/strong><\/h4>\n<p>Total construction starts lost 7% in June, slipping to a seasonally adjusted annual rate of $863.6 billion, according to <a href=\"https:\/\/www.construction.com\/\">Dodge Data &amp; Analytics<\/a>. All three major sectors (residential, nonresidential building, and nonbuilding) pulled back during the month. Single family housing starts are feeling the detrimental effects of rising materials prices. Large projects that broke ground in May were absent in June for nonresidential building and nonbuilding starts, resulting in declines.<\/p>\n<p>\u201cUnabated materials price inflation has driven a significant deceleration in single family construction,\u201d stated Richard Branch, Chief Economist for Dodge Data &amp; Analytics. \u201cLumber futures have eased in recent weeks, but builders are unlikely to see much relief over the short-term, meaning building costs will continue to negatively influence the housing industry. On the other hand, the nascent recovery in nonresidential buildings has continued on as projects pile up in the planning stages. These mixed signals coming from both residential and nonresidential construction starts suggest that recovery from the pandemic will remain uneven in coming months as rising materials prices and labor shortages weigh on the industry.\u201d<\/p>\n<p>Below is the full breakdown:<\/p>\n<ul>\n<li><strong>Nonbuilding construction starts<\/strong> lost 13% in June, dipping to a seasonally adjusted annual rate of $171.8 billion. While highway and bridge starts slid 7%, the overall decline in nonbuilding starts was the result of a 63% drop in the utility and gas plant category that followed a large increase in May. Total nonbuilding starts, excluding the utility\/gas plant category, rose 3% on gains in environmental public works and miscellaneous nonbuilding. Total nonbuilding starts were up 4% within the first six months of 2021. Environmental public works surged 35%, while utility\/gas plants gained 13%. Miscellaneous nonbuilding (-6%) and highway and bridge starts (-9%), however, dragged on the sector.For the 12 months ending June 2021, total nonbuilding starts were 6% lower than the 12 months ending June 2020. Environmental public works starts were 23% higher, while utility and gas plant starts were down 20%. Highway and bridge starts were down 3% and miscellaneous nonbuilding starts were 22% lower through the first six months.\n<p><strong>The largest nonbuilding projects to break ground in June<\/strong> were a $453 million sewer overflow project in Pawtucket RI, the $439 million Bay Park Conveyance Project in Cedar Creek NY, and the $390 million I-5 North Capacity Enhancement project in Los Angeles CA.<\/li>\n<li><strong>Nonresidential building starts<\/strong> dropped 7% in June to a seasonally adjusted annual rate of $288.0 billion. Large healthcare and manufacturing projects provided a significant boost to May, but the absence of similar projects in June led to normalized starts activity. Without the negative influence of these sectors, nonresidential starts would have increased 10% in June. Commercial starts rose 12% with all categories posting gains, while institutional starts fell by 9% and manufacturing starts lost 62% over the month. Through the first six months of 2021, nonresidential building starts were slightly ahead of the first six months of 2020. Commercial starts were up 7% and manufacturing starts were 36% higher, while institutional starts were 5% lower through the first six months.For the 12 months ending June 2021, nonresidential building starts were 14% lower than the 12 months ending June 2020. Commercial starts were down 18%, while institutional starts fell 10%. Manufacturing starts dropped 42% in the 12 months ending June 2021.\n<p><strong>The largest nonresidential building projects to break ground in June<\/strong> were the $1.0 billion Research and Development District office project in San Diego CA, the $470 million second phase of the Oyster Point Offices in San Francisco CA, and the $410 million Amazon distribution center in Rochester NY.<\/li>\n<li><strong>Residential building starts<\/strong> fell 5% in June to a seasonally adjusted annual rate of $403.8 billion. Single family starts lost 8%, while multifamily starts were 2% higher. From January through June, total residential starts were 32% higher than the same period a year earlier. Single family starts were up 37%, while multifamily starts were 19% higher.For the 12 months ending June 2021, total residential starts were 22% higher than the 12 months ending June 2020. Single family starts gained 29%, while multifamily starts were up 5% on a 12-month sum basis.\n<p><strong>The largest multifamily structures to break ground in June<\/strong> were the $400 million Courthouse Commons project in San Diego CA, the $267 million 1900 Crystal Ave residences in Arlington VA, and the $250 million Five Park Condominiums and Apartments in Miami Beach FL.<\/li>\n<li><strong>Regionally,<\/strong> June\u2019s starts rose in the Northeast but fell in all other regions.<\/li>\n<\/ul>\n<p style=\"text-align: center;\">JUNE 2021 CONSTRUCTION STARTS<\/p>\n<p><img decoding=\"async\" class=\"aligncenter\" style=\"height: 588px;\" src=\"https:\/\/www.construction.com\/wp-content\/uploads\/2022\/10\/construction-starts-chart-June-2021.png\" alt=\"Bar chart showing construction starts for June 2021\" \/><br \/>\n<img decoding=\"async\" class=\"aligncenter\" style=\"height: 588px;\" src=\"https:\/\/www.construction.com\/wp-content\/uploads\/2022\/10\/construction-starts-graph-June-2021.png\" alt=\"Line graph showing construction starts for June 2021\" \/><\/p>\n<p style=\"text-align: center;\">###<\/p>\n<p><strong>About Dodge Construction Network<\/strong> Dodge Construction Network leverages an unmatched offering of data, analytics, and industry-spanning relationships to generate the most powerful source of information, knowledge, insights, and connections in the commercial construction industry. The company powers four longstanding and trusted industry solutions\u2014Dodge Data &amp; Analytics, The Blue Book Network, Sweets, and IMS\u2014to connect the dots across the entire commercial construction ecosystem. Together, these solutions provide clear and actionable opportunities for both small teams and enterprise firms. Purpose-built to streamline the complicated, Dodge Construction Network ensures that construction professionals have the information they need to build successful businesses and thriving communities. With over a century of industry experience, Dodge Construction Network is the catalyst for modern commercial construction. To learn more, visit <a href=\"https:\/\/www.construction.com\/\">construction.com<\/a><\/p>\n<p><strong>Media Contact :<\/strong><br \/>\nCailey Henderson | 104 West Partners | <a href=\"mailto:cailey.henderson@104west.com \">cailey.henderson@104west.com <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Higher materials prices are weighing heavily on single family construction HAMILTON, New Jersey \u2014 July 20, 2021 \u2014 Total construction starts lost 7% in June, slipping to a seasonally adjusted annual rate of $863.6 billion, according to Dodge Data &amp; Analytics. All three major sectors (residential, nonresidential building, and nonbuilding) pulled back during the month&#8230;.<\/p>\n","protected":false},"author":41,"featured_media":23698,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_uag_custom_page_level_css":"","footnotes":""},"categories":[73],"tags":[],"class_list":["post-2798","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-total-construction-starts"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.0 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Total Construction Starts Slip in June | Dodge Construction Network<\/title>\n<meta name=\"description\" content=\"Total construction starts slipped in June 2021. 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All three major sectors (residential, nonresidential building, and nonbuilding) pulled back during the month....","_links":{"self":[{"href":"https:\/\/www.construction.com\/wp-json\/wp\/v2\/posts\/2798","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.construction.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.construction.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.construction.com\/wp-json\/wp\/v2\/users\/41"}],"replies":[{"embeddable":true,"href":"https:\/\/www.construction.com\/wp-json\/wp\/v2\/comments?post=2798"}],"version-history":[{"count":0,"href":"https:\/\/www.construction.com\/wp-json\/wp\/v2\/posts\/2798\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.construction.com\/wp-json\/wp\/v2\/media\/23698"}],"wp:attachment":[{"href":"https:\/\/www.construction.com\/wp-json\/wp\/v2\/media?parent=2798"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.construction.com\/wp-json\/wp\/v2\/categories?post=2798"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.construction.com\/wp-json\/wp\/v2\/tags?post=2798"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}