Dodge Data & Analytics released its April 2022 report on construction starts, revealing a positive uptick across multiple sectors after a slowdown in March. Total construction starts rose for the month, driven by gains in residential and nonresidential building, while nonbuilding infrastructure posted mixed results. For professionals tracking industry momentum, understanding these trends is essential for strategic planning and resource allocation. Effective Construction Data Analytics Project Metrics Performance Benchmarking Predictive approaches help contractors align their operations with broader market conditions. This article examines the April figures across every major sector, drawing on the latest data from Dodge to provide a comprehensive overview of where the industry stands heading into the peak building season.
April Construction Starts: Overall Market Momentum
The construction sector demonstrated resilience in April 2022, pushing past concerns about rising interest rates and potential economic headwinds. According to Richard Branch, chief economist for the Dodge Construction Network, the industry is showing signs of shrugging off recession fears as underlying economic growth and hiring remain solid. For the 12 months ending April 2022, total construction starts stood 12% above the comparable period ending April 2021, indicating sustained momentum across the board.
Sector-by-Sector Performance Overview
The April data reveals a clear hierarchy of performance across the three main construction categories:
| Sector | Monthly Change (April) | 12-Month Change vs April 2021 | Annualized Rate |
|---|---|---|---|
| Total Construction | Up | +12% | N/A |
| Nonresidential Building | +6% | +24% | $295.9 billion |
| Residential Building | +4% | +11% | $462.9 billion |
| Nonbuilding Infrastructure | -4% | -1% | $187.1 billion |
Branch noted that many building sectors have made the turn from weakness to recovery, with the pipeline of projects in planning continuing to expand. He added that this trend should continue in the months ahead, though he cautioned that Federal Reserve actions to combat inflation could potentially thwart momentum later in the year.
Regionally, construction starts increased in the Northeast, South Atlantic, and South Central regions during April, while the Midwest and West experienced declines. This geographic variation reflects differences in local economic conditions, population growth patterns, and state-level infrastructure spending priorities.
Nonbuilding Sector: Mixed Results for Infrastructure Projects
The nonbuilding construction category, which encompasses infrastructure and heavy civil work, experienced a 4% decline in April to a seasonally adjusted annual rate of $187.1 billion. This drop followed weaker performance in highway and bridge projects, though certain subcategories posted gains that helped offset broader losses.
Environmental and Utility Gains
Within the nonbuilding sector, two subcategories recorded positive monthly results:
- Environmental public works starts rose 8% in April, reflecting continued investment in water treatment, waste management, and related infrastructure.
- Utility and gas plant starts moved 10% higher during the month, driven by energy infrastructure demand.
Highway and Bridge Declines
On the negative side, highway and bridge projects saw starts fall 14% in April, while miscellaneous nonbuilding starts dropped 2%. These declines pulled the overall nonbuilding category into negative territory for the month. However, the picture looks somewhat different on a year-to-date basis, with highway and bridge starts gaining 28% through the first four months of 2022 compared to the same period in 2021.
Environmental public works projects were 2% higher through four months, while miscellaneous nonbuilding and utility and gas plant starts dropped 37% and 39% respectively over the same window. For the 12 months ending April 2022, total nonbuilding starts were 1% lower than in the 12 months ending April 2021. Environmental public works starts were up 10%, and street and bridge starts gained 6% over that same period.
Major Nonbuilding Projects Breaking Ground
Several large-scale infrastructure projects broke ground in April, underscoring continued investment in the nation’s built environment:
- The $531 million Gross Reservoir Expansion in Golden, Colorado, a major water infrastructure project.
- The $450 million Seven Cowboy wind project in Washita and Kiowa counties, Oklahoma.
- The $338 million Great Pathfinder wind farm in Boone and Hamilton counties, Iowa.
These projects highlight the diversity of nonbuilding construction activity, spanning water resources, renewable energy, and utility infrastructure. Construction firms involved in these sectors benefit from robust planning and Equipment Telematics and Fleet Management Gps Tracking Diagnostics systems to optimize heavy equipment deployment across geographically dispersed project sites.
Nonresidential Building: Manufacturing Leads the Recovery
Nonresidential building starts rose 6% in April to a seasonally adjusted annual rate of $295.9 billion, representing one of the stronger showings across the construction industry. The category was buoyed by gains across commercial, institutional, and especially manufacturing segments.
Monthly Performance by Subcategory
April data for nonresidential subcategories showed broad-based improvement:
- Commercial starts rose 2% for the month, supported by retail, office, and warehouse activity.
- Institutional starts gained 8%, driven by education, healthcare, and public building projects.
- Manufacturing starts increased 16% in April, reflecting a surge in industrial facility construction.
Year-to-Date and Rolling Trends
The year-to-date picture for nonresidential building is even more encouraging. Through the first four months of 2022, nonresidential building starts were 19% higher than during the same period in 2021. Commercial starts advanced 11%, institutional starts gained 1%, and manufacturing starts soared an extraordinary 189% on a year-to-date basis.
For the 12 months ending April 2022, nonresidential building starts were 24% higher than in the 12 months ending April 2021. Commercial starts grew 19%, institutional starts rose 11%, and manufacturing starts swelled 163% on a 12-month rolling sum basis. This sustained growth in manufacturing construction reflects the reshoring of supply chains, increased domestic production capacity, and federal incentives for advanced manufacturing.
Major Nonresidential Projects
The largest nonresidential building projects to break ground in April highlight the diversity of activity in this sector:
- The $500 million Caesar Virginia hotel and casino in Danville, Virginia.
- The $430 million Aggie Square Life Science building in Sacramento, California.
- The $400 million The Rose Gaming Resort in Dumfries, Virginia.
These projects span hospitality, life sciences, and entertainment, reflecting the breadth of demand across commercial and institutional categories. Contractors working on such complex projects require the right Essential Insights On 40 Construction Tools List With detailed specifications to ensure quality execution across all phases of delivery.
Residential Construction: Multifamily Outpaces Single Family
Residential building starts rose 4% in April to a seasonally adjusted annual rate of $462.9 billion, making it the largest construction category by dollar volume. However, the performance varied significantly between single family and multifamily segments.
Single Family vs. Multifamily Dynamics
The April data revealed a clear divergence within the residential sector:
Year-to-Date and Long-Term Trends
Through the first four months of 2022, residential starts were 3% higher than in the first four months of 2021. Multifamily starts were up 16%, while single family housing slipped 2%. This pattern confirms the ongoing shift toward higher-density housing development in many metropolitan areas.
For the 12 months ending April 2022, residential starts improved 11% from the same period ending April 2021. Single family starts were 6% higher and multifamily starts were 27% stronger on a 12-month rolling sum basis. The multifamily segment continues to be the primary growth engine in residential construction, supported by demographic trends, urbanization, and changing lifestyle preferences.
Leading Multifamily Projects in April
The largest multifamily structures to break ground in April underscore the scale of current rental housing investment:
- The $420 million 2-10 54th Avenue apartments in Long Island City, New York.
- The $400 million Civic Square condominiums in Seattle, Washington.
- A $300 million mixed-use building in Long Island City, New York.
These projects demonstrate the concentration of multifamily development in high-demand urban corridors. Understanding these trends helps contractors and developers make informed decisions about project timing, location, and scale. Reviewing the Key Facts About Construction Project Life Cycle Phases provides essential context for planning large residential developments from conception through completion.
Outlook for Residential Construction
While the April data is broadly positive, several factors could influence the trajectory of residential construction in coming months:
- Rising mortgage rates may continue to dampen single family demand, particularly for first-time homebuyers.
- Multifamily construction benefits from strong rental demand, but rising material costs and labor shortages pose margin challenges.
- Zoning and land-use regulations in high-growth metropolitan areas continue to shape where and how residential development occurs.
- Supply chain constraints for key materials such as lumber, windows, and mechanical equipment remain a factor in project timelines.
- State and local housing policies, including density bonuses and affordable housing mandates, are influencing project feasibility studies.
Construction professionals who monitor these trends closely can position their firms to capitalize on growing segments while managing risk in areas showing signs of softening demand. The April 2022 Dodge data provides a valuable snapshot of an industry navigating a complex economic environment with cautious optimism.