Construction spending ended an almost decade-long expansion in the spring of 2020, and experts predict nonresidential construction will remain in recession well into 2021.
Total construction starts fell 10% to $766.3 billion in 2020, according to data released by Dodge Data & Analytics, with nonresidential building starts declining most steeply and posting a 24% loss to $239.9 billion, the lowest level since 2015.
Overall building starts decreased 5% in December to a seasonally adjusted annual rate of $784.3 billion, while nonresidential starts fell 11% that month to a seasonally adjusted rate of $225.3 billion. The office, hotel, and warehouse sectors all posted double-digit declines in December, with total commercial starts falling 23% over the course of the month.
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