Nonbuilding and multifamily activity led this month’s growth

BOSTON, MA — September 19, 2025 — Total construction starts were up 1.7% in August to a seasonally adjusted annual rate of $1.23 trillion, according to Dodge Construction Network. Nonresidential building starts declined by 5.4%, residential starts improved 2.4%, and nonbuilding starts grew 9.3% over the month. On a year-to-date basis through August, total construction starts were up 1.9% from last year. Nonresidential starts were up 3.4%, residential starts were down 5.0% and nonbuilding starts were 8.1% higher over the same period. 

For the 12 months ending August 2025, total construction starts were up 4.7% from the 12 months ending August 2024. Residential starts were down 1.2%, nonresidential starts increased 4.8%, and nonbuilding starts were up 12.1% over the same period.  

“Construction activity continues to present a mixed picture,” stated Sarah Martin, Associate Director of Forecasting at Dodge Construction Network. “August growth was concentrated in a few key sectors, while single-family and commercial projects experienced broad declines. Large-scale megaprojects continue to support overall activity, but with mounting signs of economic softness, the pace of growth is beginning to moderate.” 

Nonbuilding

Nonbuilding construction starts expanded 9.3% in August to a seasonally adjusted annual rate of $431 billion. Utilities (+39.7% m/m) supported this month’s growth, while highway and bridge (-5.6% m/m), environmental public works (-2.8% m/m), and miscellaneous nonbuilding (-3.1% m/m) starts fell back. On a year-to-date basis through August, nonbuilding starts were up 8.1%, alongside gains in highways and bridges (+7.8% m/m), miscellaneous nonbuilding (+22.6% m/m), and utilities (+12.6% m/m). Conversely, environmental public works starts are down 3.4% year-to-date through August.  

For the 12 months ending August 2025, total nonbuilding starts were up 12.1%. Environmental public works improved by 10.8% compared to the 12 months ending August 2024. Highway and bridge starts were up 11.1%, miscellaneous nonbuilding starts were up 30.5% and utility/gas starts increased 5.4% over the same period.  

The largest nonbuilding projects to break ground in August included the $5.1 billion Woodside Louisiana LNG Facility (Train #3, Phase 1) in Sulphur, Louisiana, the $2.9 billion Cheniere Corpus Christi LNG Facility (Trains 8 and 9, Stage 3B) in Gregory, Texas and the $1.8 billion Kingston Energy Complex with Battery Storage in Kingston, Tennessee. 

Nonresidential 

Nonresidential building starts declined 5.4% in August to a seasonally adjusted annual rate of $431 billion. Commercial starts were down 12.0%, as all sectors faced month-to-month declines. Most notably, warehouse starts fell back 25.3% and retail stores declined 11.3% between July and August. Institutional starts improved 3.7% driven by stronger activity in education (+0.5% m/m), healthcare (+2.8% m/m) and other institutional categories (+9.9% m/m). Manufacturing activity remains volatile, as the sector dropped 24.4% in August, following last month’s 84.8% drop.  On a year-to-date basis through August, nonresidential starts are up 3.4% compared to August 2024. Commercial and industrial starts are up 7.6% and institutional starts are down 0.7% over the same period.  

For the 12 months ending August 2025, total nonresidential starts were up 4.8% compared to the 12 months ending August 2024. Commercial starts were up 17.4%, institutional starts improved 6.1%, and manufacturing starts were down 27.4% over the same period.  

The largest nonresidential building projects to break ground in August were the $880 million Geisinger Medical Center Tower in Danville, Pennsylvania, the $666 million Fort Meade East Campus Office Building in Fort Meade, Maryland, and the $540 million UM Shore Medical Center in Easton, Maryland.  

Residential 

Residential building starts increased 2.4% in August to a seasonally adjusted annual rate of $364 billion. Single family starts declined 5.4%, while multifamily starts expanded a steady 15.5%. On a year-to-date basis through August, residential starts are down 5.0% – with single family starts down 11.7% and multifamily starts up 9.9%.  

For the 12 months ending August 2025, total residential starts fell 1.2%. Single family starts fell 5.9% compared to the 12 months ending August 2024, and multifamily starts increased 8.6% over the same period.  

The largest multifamily structures to break ground in August were the $619 million Kuilei Place Mixed-Use Residential Tower in Honolulu, Hawaii, the $413 million 120 Brickell Residences in Miami, Florida and the $383 million Coles Street Mixed-Use Development in Jersey City, New Jersey.  

Regionally, total construction starts in August rose only in the South Central (+53% m/m) and declined in the Northeast (-25% m/m), Midwest (-10% m/m), South Atlantic (-2% m/m) and West (-12% m/m).

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