December 2020 construction starts decreased 5%

January 21, 2021

Dodge Data & Analytics, New York, has reported construction starts fell 5% in December 2020. Total construction starts in December 2020 were down 10% compared with December 2019.

“The roller coaster year of 2020 is over, but not forgotten,” said Richard Branch, chief economist for Dodge Data & Analytics. “The scars from the pandemic and recession will be long-lasting and resulted in significant declines across most construction sectors. Single-family housing, warehouse, and highway and bridge starts were bright spots that cannot be understated for their gains. There will be difficult months ahead for the economy and for construction starts as COVID-19 cases mount. However, the continued rollout of vaccines means 2021 will be a better year.”

Nonresidential building construction decreased 11% in December 2020. Commercial construction starts fell 23% as office, hotel and warehouse starts declined. Institutional starts dropped 5%, and manufacturing starts surged 59%.

Residential building construction fell less than 1% in December 2020. Single-family housing dropped 7%, and multifamily construction increased 24%.

Nonbuilding construction fell 5% in December 2020.

During 2020, nonresidential building was down 24% compared with 2019. Residential building rose 4%, and nonbuilding construction fell 14%.

Tags: Business | Residential | Commercial | Trends

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