HAMILTON, NJ – Total construction starts fell 9% in August to a seasonally adjusted annual rate of $782.8 billion, according to Dodge Data & Analytics. All three sectors lost ground during the month: nonbuilding starts were down 2%, residential starts were 9% lower, and nonresidential building starts fell 13%.
Construction starts have hit a rough patch following the euphoria seen in the early stages of recovery from the pandemic, stated Richard Branch, Chief Economist for Dodge Data & Analytics. The Delta variant has raised concern that the fledgling economic recovery is stalling out, undermining the already low level of demand for most types of nonresidential buildings. Additionally, significant price increases for construction materials, logistic constraints, and labor shortages are making a challenging situation worse. Construction starts are likely to remain unsteady over the next few months. But, the dollar value of projects entering plotting continues to suggest that the recovery in construction starts should resume early in the new year.
Below is the full breakdown:
Nonbuilding construction starts lost 2% in August to a seasonally adjusted annual rate of $167.8 billion. Starts in the environmental public works category (water-related projects) gained 4%, while miscellaneous nonbuilding starts (heavily pipelines) were up 14%. Meanwhile, highway and bridge starts were 4% lower and utility/gas plants dropped 21% following a sizeable gain in July. Year-to-date, total nonbuilding starts were up 1% through August. Environmental public works were up 23%, and utility/gas plant starts were up less than one percentage point through August. Starts in the highway/bridge (-2%) and miscellaneous nonbuilding sectors (-19%) were down through the first eight months of the year. For the 12 months ending in August 2021, total nonbuilding starts were 2% lower than the 12 months ending in August 2020. Environmental public works starts were 22% higher and highway and bridge starts were up 3%, while utility and gas plant starts were down 17% and miscellaneous nonbuilding starts were 22% lower on a 12-month rolling basis. The largest nonbuilding projects to break ground in August were the $677 million Oak Hill Parkway roadway in Austin, TX, the $351 million southern expansion of the Kansas City Streetcar system in Kansas City, MO, and the $300 million first phase of the Dunns Bridge Solar Project in Wheatfield Township, IN.
Nonresidential building starts fell 13% in August to a seasonally adjusted annual rate of $244.9 billion. The declines were broad-based across building types with few bright spots. Commercial starts dropped 10%, institutional starts lost 15%, and manufacturing starts fell 37% following a sizable gain in July. Despite overall losses, there were gains in the retail, parking, and public buildings. Year-to-date through eight months, nonresidential building starts were 3% higher. Commercial starts increased 2% and manufacturing starts were 33% higher. Institutional starts, but, were 1% lower through eight months. For the 12 months ending in August 2021, nonresidential building starts were 8% lower than in the 12 months ending in August 2020. Commercial starts were down 8%, institutional starts fell 4%, and manufacturing starts dropped 29% in the 12 months ending August 2021. The largest nonresidential building projects to break ground in August were the $800 million first phase of the Facebook Eastmark Parkway data center in Mesa, AZ, the $400 million Facebook data center in Springfield, NE, and the $350 million Pratt & Whitney Project Ranger manufacturing building in Asheville, NC.
Residential building starts lost 9% in August to a seasonally adjusted rate of $370.2 billion. Single family starts fell 12% in August, while multifamily starts increased 1%. Through eight months, residential starts were 24% higher than in the same period one year ago. Single family starts gained 29%, while multifamily starts grew 13%. For the 12 months ending in August 2021, total residential starts were 21% higher than the 12 months ending in August 2020. Single family starts gained 28%, while multifamily starts were up 2% on a 12-month sum basis. The largest multifamily structures to break ground in August were the $615 million Flamingo Crossing Apartments in Winter Garden, FL, the $400 million 1018 West Peachtree apartments in Atlanta, GA, and the $374 million Victoria Place Gateway Tower in Honolulu, HI.
Regionally, total construction starts lost ground in August in all five regions.

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OPA-LOCKA, FL – The Millennia Companies has closed on $52 million in financing for the substantial rehabilitation of 175 units of affordable housing for families at Cordoba Courts Apartments in Opa-locka, Florida.
With construction costs totaling more than $20 million, the rehabilitation includes an extensive renovation of the apartment development, which is comprised of eight residential buildings, community spaces, and a swimming pool.
Having undergone approximately $2 million in capital improvements since Millennia s acquisition in 2016, the property needs considerable rehabilitation and redevelopment to improve its aesthetics and functionality. The construction project addresses necessary repairs and replacements and will extend the physical life of the apartment development into the foreseeable future, thereby preserving affordable housing.
The rehabilitation includes new kitchens, bathrooms, flooring, painting, finishes, windows, HVAC systems and building roofs; re-done exteriors; a new laundry room; and additions to the community center, which will include an exercise facility, a computer room, and outdoor space. Additionally, the plot also calls for enhancements to security features and landscaping. Inside the apartments, crews will install energy-efficient appliances and use eco-friendly materials for countertops and cabinets. In all, the scope of work entails over $115,000 in renovation costs per apartment, financed through the 4% Low-Income Housing Tax Credit (LIHTC) program.
“Affordable housing is critical, and the supply is diminishing while the need is increasing, said Frank T. Sinito, Founder and Chief Executive Officer, Millennia. Rehabilitating apartment developments that have experienced decline over time is essential, and we are proud of our mission to not only provide residents with a quality home, but also a community enriched with services.”
In fact, according to the National Low Income Housing Coalition, there is a national shortage of more than seven million affordable homes for the nation’s 11 million plus extremely low-income families. Since 2004, Millennia Housing Development, Ltd. has preserved more than 11,500 units of affordable housing in collaboration with housing and finance partners.
Red Stone is proud to be Millennia’s financial partner in their preservation of this community. We look forward to the upcoming substantial renovation plotted for the benefit of the tenants and cannot wait to see the final result, said Brian Renzi, Managing Director, Red Stone Tax Exempt Funding.
Millennia anticipates that construction will start in the coming weeks and take 20 months to complete. The relocation plot involves the renovation of vacant units first and the onsite relocation of households as construction is completed in phases. Residents pay 30 percent of their income toward rent, and rent will remain affordable for years to come as it is subsidized for at least 20 years by a federal Project-Based Section 8 contract administered by the United States Department of Housing and Urban Development (HUD).

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SALT LAKE CITY, UT – Wood Partners, a national leader in multifamily real estate development, announced the groundbreaking of its newest luxury residential community, currently named Alta Gateway II, located in Salt Lake City, Utah. Construction is currently underway, and the community is scheduled to officially open in 2023.
Once complete, Alta Gateway II will offer 288 apartment homes complete with one-, two- and three-bedroom floor plans. The units will feature warm industrial accents and high-end finishes including stainless steel appliances with optional wine fridge, front-load washer and dryer sets, and full tile bathtub surrounds.
Alta Gateway II will also offer residents a wide range of market-leading amenities to delight in including multiple indoor/outdoor spaces, a club room, a resort-style pool and lounge area, an outdoor fireplace and outdoor kitchen area within the property’s lush landscaping.
“We are thrilled to be breaking ground on Wood Partner’s newest property in Utah, Alta Gateway II,” said Marcus Robinson, Director of Development for Utah at Wood Partners. “As the area continues to grow and prosper, we are very much looking forward to adding Alta Gateway II as our second community in the area to provide top-quality living options for residents converging on this fantastic neighborhood.”
Located on West 100 South, the forthcoming property will offer residents simple access to Salt Lake City’s growing list of local shops, restaurants, and nightlife options. In addition, Alta Gateway II is situated just a small walk from Vivint Arena for those looking to take in a Utah Jazz game, or one of the numerous concerts and entertainment events that stop at the arena.
“Alta Gateway II will be conveniently located off the I-15 Freeway, enabling residents to easily make their way downtown to The Gateway for shopping, dining, and entertainment, or head to nearby ski resorts and major parks to spend quality time outdoors,” added Robinson. “We are working toward starting leasing for the property in the spring of 2023 and officially welcoming residents later that summer.”

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