December 2021 construction starts were flat amid industry challenges

January 20, 2022

Dodge Data & Analytics, New York, has reported construction starts were unchanged in December 2021 as contractors continue to struggle with high materials prices, labor shortages and COVID-19.

Nonresidential building construction rose 3% in December 2021. Commercial construction starts increased 12%, and institutional starts fell 17%.

Residential building construction rose 4% in December 2021. Single-family housing rose 3%, and multifamily construction climbed 5%.

Nonbuilding construction dropped 12% in December 2021.

In 2021, nonresidential building was up 12% compared with 2020. Residential building rose 20%, and nonbuilding construction rose 0.4%.

“The increase in construction starts was impressive given the many challenges the industry faced during the year,” said Richard Branch, chief economist for Dodge Construction Network. “Higher material prices, labor shortages, and multiple waves of COVID infections threatened to dampen the recovery. However, construction remained resilient and persistent throughout the year in the face of these difficult issues. While these challenges will remain in 2022, the industry is well-positioned to make further gains fed by a growing pipeline of nonresidential projects waiting to break ground and the infusion of money directed towards infrastructure.”

Tags: Business | Residential | Commercial | Trends


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