Growth in some sectors offset weakness in others.
BOSTON, MA — March 24, 2025 — Total construction starts were up 0.5% in February to a seasonally adjusted annual rate of $1.1 trillion, according to Dodge Construction Network. Nonresidential building starts grew 2%, residential starts decreased 1%, while nonbuilding starts were unchanged. On a year-to-date basis through February, total construction starts were down 2% from last year. Nonresidential starts were down 14%, residential starts were down 3% and nonbuilding starts were up by 16% over the same period.
For the 12 months ending February 2025, total construction starts were up 3% from the 12 months ending February 2024. Residential starts were up 3%, nonresidential starts were flat, and nonbuilding starts rose 7% over the same period.
“While increased uncertainty over the trajectory of monetary and fiscal policies may be informing some of the flat month-to-month trends – the largest construction sectors still saw growth in activity throughout February,” stated Sarah Martin, associate director of forecasting at Dodge Construction Network. “Steady growth in planning activity throughout 2024 should support stronger construction starts in future months – but owners and developers will have to factor in higher risk around elevated material costs, supply chain volatility and further labor constraints.”
Nonbuilding
Nonbuilding construction starts were flat in February at a seasonally adjusted annual rate of $334 billion. Highway and bridge starts and environmental public works both increased 8% but utility/gas starts were down 21% and miscellaneous nonbuilding starts receded 10% over the month. On a year-to-date basis through February, nonbuilding starts were up 16% in February – with utility/gas starts up 68%, miscellaneous nonbuilding down 5%, highway and bridge starts up 20%, and environmental public work starts up 1% over the same period.
For the 12 months ending February 2025, total nonbuilding starts were up 7%. Environmental public works led the way, improving 18% compared to the 12 months ending February 2024. Highway and bridge starts were up 7%, miscellaneous nonbuilding starts were up 16% and utility/gas starts were down 7% over the same period.
The largest nonbuilding projects to break ground in February were the $1.4 billion road work on the Westshore Interchange in Tampa, Florida, the $1.1 billion Kensico-Eastview Connection Tunnel and Shafts in Valhalla, New York and the $1.0 billion Aratina Solar farm in Boron, California.
Nonresidential
Nonresidential building starts improved 2% in February to a seasonally adjusted annual rate of $402 billion. Commercial starts were 22% higher in February, alongside strong office, hotel, and parking garage starts. Institutional starts, on the other hand, were down 2% in February following weaker healthcare activity after a multi-billion-dollar hospital started in January. Manufacturing starts fell 48% over the month. On a year-to-date basis through February, nonresidential starts are down 14% compared to February 2024. Commercial starts are down 8% and institutional starts are up 11% over the same period.
For the 12 months ending February 2025, total nonresidential starts were flat compared to the 12 months ending February 2024. Commercial starts were up 7%, institutional starts improved 15%, and manufacturing starts were down 51% over the same period.
The largest nonresidential building projects to break ground in February were the $1.8 billion terminal at John Glenn Columbus Airport in Columbus, Ohio, the $1.5 billion Lyndon B. Johnson Hospital replacement in Houston, Texas and the $1.45 billion renovations to the Jacksonville Jaguars EverBank Stadium in Jacksonville, Florida.
Residential
Residential building starts fell 1% in February to a seasonally adjusted annual rate of $401 billion. Single family starts increased by 1%, while multifamily starts fell back 6%. On a year-to-date basis through February, residential starts are down 3% when compared to February 2024 – with single family starts up 2% and multifamily starts down 11%.
For the 12 months ending February 2025, total residential starts were up 3% – while single family starts were up 11% and multifamily starts were down 11% compared to the 12 months ending February 2024.
The largest multifamily structures to break ground in February were the $478 million condominiums at The Residences at 1428 Brickell in Miami, Florida, the $335 million Highbridge Apartment Building in Highbridge, New York and the $265 million Tower 2 at The Standard Residences Brickell in Miami, Florida.
Regionally, total construction starts in February rose in the Northeast, Midwest, South Atlantic and West, but fell in the South Central.
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