A wide gap in data has unfolded between commercial, non-building, and residential construction thus far in 2024. Residential construction and the housing market has cooled, with mortgage rates topping 8% and a drop in home sales and the number of houses on the market. In stark contrast to this, commercial, nonresidential and nonbuilding construction has stayed hot. Nonbuilding starts are up 20% for the period YTD August 2023, compared to the same period in 2022. Nonresidential starts were up 6% for that same period. In comparison, residential starts were 17% lower over that same period, a significant drop and gap between the three categories of construction. Strong non-residential construction may continue to drive the market for 2024.
