Nonresidential starts tumble over the month 

BOSTON, MA — August 22, 2025 — Total construction starts were down 10.2% in July to a seasonally adjusted annual rate of $1.19 trillion, according to Dodge Construction Network. Nonresidential building starts declined by 30.1%, residential starts fell 3.1%, and nonbuilding starts grew 20.4% over the month. On a year-to-date basis through July, total construction starts were up 1.6% from last year. Nonresidential starts were up 4.3%, residential starts were down 4.4% and nonbuilding starts were 5.3% higher over the same period. 

For the 12 months ending July 2025, total construction starts were up 4.1% from the 12 months ending July 2024. Residential starts were down 0.7%, nonresidential starts were up 4.6%, and nonbuilding starts improved 9.3% over the same period.  

“Construction starts reversed course in July, offsetting the strong gains made in June,” stated Eric Gaus, Chief Economist at Dodge Construction Network. “The latest data reinforced trends we have been watching since the beginning of the year: single family building and manufacturing are struggling, but data centers continue to boom.” 

Nonbuilding

Nonbuilding construction starts improved 20.4% in July to a seasonally adjusted annual rate of $395 billion. Utilities (127.2% m/m) and miscellaneous nonbuilding (50.0%) supported gains, while highway and bridge starts (-2.5% m/m), and environmental public works (-17.7% m/m) starts fell back. On a year-to-date basis through July, nonbuilding starts were up 5.3%, alongside gains in highways and bridges (+8.4%) and miscellaneous nonbuilding (+18.8%). Conversely, utilities are down 1.0% year-to-date, and environmental public works are down 0.5% over the same period.  

For the 12 months ending July 2025, total nonbuilding starts were up 9.3%. Environmental public works improved by 15.3% compared to the 12 months ending July 2024. Highway and bridge starts were up 9.9%, miscellaneous nonbuilding starts were up 29.6% and utility/gas starts were down 7.7% over the same period.  

The largest nonbuilding projects to break ground in July were the $3.0 billion Empire Wind Offshore Wind Energy Project, in New York, the $1.8 billion A’s Ballpark in Las Vegas, Nevada and the $1.6 billion Boardman to Hemingway Power Transmission Line in Boardman, Oregon.   

Nonresidential 

Nonresidential building starts crashed 30.1% in July to a seasonally adjusted annual rate of $443 billion. Commercial starts were down 8.5%, due to normalizing office starts (-33.1% m/m) which equaled the 2024 average in levels. Institutional starts fell 4.6% as education construction reversed June’s gains (-13.3% m/m), other institutional categories (-5.0% m/m) pulled back, and healthcare rebounded (+13.5% m/m). The manufacturing rollercoaster plunged 84.7% over the month, following an unusually robust June. On a year-to-date basis through July, nonresidential starts are up 4.3% compared to July 2024. Commercial and industrial starts are up 5.5% and institutional starts are up 3.0% over the same period.  

For the 12 months ending July 2025, total nonresidential starts were up 4.6 compared to the 12 months ending July 2024. Commercial starts were up 12.0%, institutional starts improved 10.1%, and manufacturing starts were down 27.8% over the same period.  

The largest nonresidential building projects to break ground in July were the $855 million UU West Valley Eccles Health Campus in West Valley City, Utah, the $650 million Mercy Hospital Campus in Wentzville, Missouri, and the $550 million Meta Data Center Campus in Bowling Green, Ohio. 

Residential 

Residential building starts declined 3.1% in July to a seasonally adjusted annual rate of $356 billion. Single family starts increased by 1.2%, while multifamily starts fell 9.5%. On a year-to-date basis through July, residential starts are down 4.4% – with single family starts down 10.1% and multifamily starts up 8.3%.  

For the 12 months ending July 2025, total residential starts fell 0.7%. Single family starts fell 3.8% compared to the 12 months ending July 2024, and multifamily starts increased 5.5% over the same period.  

The largest multifamily structures to break ground in July were the $552 million Rangel Houses Comprehensive Repair/Renovation in New York, New York and the $365 million 20 Long Slip Apartment Tower-Pool in Jersey City, New Jersey. 

Regionally, total construction starts in July rose in the Northeast, but declined in the Midwest, West, South Central and South Atlantic.  

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