Nonbuilding construction, at $198.5 billion (annual rate), dropped 22% in March. A steep plunge for the electric utility and gas plant category, down 73%, was entirely responsible for the latest month’s nonbuilding decline. In February, the electric utility and gas plant category had included the $8.4-billion Sempra LNG export terminal in Louisiana and the $1.2-billion Stateline Solar Farm in California.

While there were several large electric utility and gas plant projects entered as March starts, such as a $500-million upgrade to a gas-fired power plant in Texas, they were considerably smaller than the large projects entered as February starts.

By contrast, the public works categories showed across-the-board gains in March. Highway and bridge construction surged 30%, led by the start of the $2.3-billion Interstate 4 upgrade in central Florida. For the first three months of 2015, the top five states ranked by the dollar amount of new highway and bridge construction were Florida, Texas, New York, California and Illinois. 

The miscellaneous public works category, which includes such diverse project types as sitework and pipelines, soared 86% in March, led by $400 million related to sitework at the Sasol ethylene cracker and derivatives complex in Louisiana and a $300-million petroleum pipeline in Texas. For the environmental categories, the March increases were as follows—river/harbor development, up 33%; water supply systems, up 16%; and sewer systems, up 1%.

Residential Building

Residential building in March was reported at $251.4 billion (annual rate), essentially even with the previous month. Single-family housing edged up a slight 1%, due to a mixed pattern by major region—the Northeast, up 19%; the Midwest, up 4%; the South Central, up 1%; and the South Atlantic and the West, each down 1%.

In effect, there hasn’t been much change from the flat pattern for single-family housing at the U.S. level that emerged during 2014, following strong percentage growth in both 2012 (up 29%) and 2013 (up 27%). Multifamily housing in March receded 4%, staying close to the heightened amount achieved in February when a 45% increase was reported.

There were nine multifamily projects valued at $100 million or more that reached groundbreaking during March, with the top four located in the New York City area—two in Brooklyn valued at $385 million and $197 million respectively, and two in Manhattan valued at $168 million and $150 million respectively.

Through the first three months of 2015, the top five metropolitan markets ranked by the dollar volume of multifamily projects were as follows—New York City, Miami, Boston, Washington, D.C., and Houston. The New York City metropolitan area during this time comprised 23% of the U.S. multifamily construction dollar amount. By comparison, the next four metropolitan areas combined comprised 20% of the U.S. multifamily construction dollar amount during the same time.

The 28% jump during the first three months of 2015 for total construction starts on an unadjusted basis compared to last year reflected growth for all three major construction sectors. Nonresidential building year-to-date increased 10%, with commercial building up 6%, manufacturing building up 10% and institutional building up 12%. Nonbuilding construction year-to-date soared 74%, with electric utilities and gas plants up 464% and public works up 13%. Residential building year-to-date advanced 12%, with single-family housing up 11% and multifamily housing up 17%.

By geography, total construction starts during the January-March period of 2015 showed this performance—the South Central, up 98%; the South Atlantic, up 17%; the Northeast, up 10%; the West, up 1%; and the Midwest, unchanged from a year ago.

Additional perspective comes from looking at 12-month moving totals, in this case the 12 months ending March 2015 versus the 12 months ending March 2014. On this basis, total construction starts were up 13%, as a result of this behavior by major sector—nonresidential building, up 22%; residential building, up 11%; and nonbuilding construction, up 6%.

By geography, the 12 months ending March 2015 revealed the following for total construction starts versus the prior 12 months—the South Central, up 32%; the South Atlantic, up 16%; the West, up 7%; and the Midwest and Northeast, each up 3%.