Broad-based Gains Signal Unexpected Strength
BOSTON, MA — May 20, 2026 — Total construction starts rose 9.0% in April to a seasonally adjusted annual rate of $1.33 trillion, according to Dodge Construction Network. Nonresidential building starts grew by 18.6%, nonbuilding starts increased 7.0%, and residential starts fell 0.7% over the month. On a year-to-date basis, total construction starts were up 5.4% through April. Nonresidential starts were up 9.1%, nonbuilding starts improved by 12.3%, and residential starts were down 4.5% over the same period. For the 12 months ending April 2026, total construction starts were up 8.1% from the 12 months ending April 2025. Residential starts were down 4.4%, nonresidential starts were up 10.0% and nonbuilding was up 19.5%.
“April’s construction starts were robust with only three categories posting month over month losses,” stated Eric Gaus, Chief Economist of Dodge Construction Network. “Large data centers and energy generation supported the growth, but 9 of the 15 categories saw double or triple digit growth.”
Nonresidential
Nonresidential building starts improved 18.6% in April to a seasonally adjusted annual rate of $550 billion. Commercial starts were up 41.4%, mostly driven by the 46.1% m/m increase in offices and data centers, however all sectors experienced growth; parking garages (120.4% m/m), warehouses (+25.0% m/m), hotels (+12.8% m/m), and stores (+5.0% m/m). Institutional starts gained 12.3% over the month, with all sub-categories experiencing growth; other institutional categories (+15.1% m/m), education (+13.2% m/m), and healthcare (+4.6%). Manufacturing construction gave up 29.3% m/m after an astounding 251.4% growth in March. On a year-to-date basis through April, nonresidential starts are up 9.1%. Commercial and industrial construction gained 30.4%, while institutional starts are down 12.1% over the same period.
For the 12 months ending April 2026, total nonresidential starts were up 10.0% compared to the 12 months ending April 2025. Commercial starts were up 25.1%, institutional starts decreased 3.8%, and manufacturing starts were up 20.9% over the same period.
The largest nonresidential building projects to break ground in April were the $5.0 billion Provident/PowerHouse Prairie Ridge Data Center Phase 1 in Midlothian, TX, the $1.9 billion SK Hynix HBM Advanced Packaging & R&D Hub project in West Lafayette, IN, and the $1.3 million Stargate Data Center Campus project in Saline Township, MI.
Nonbuilding
Nonbuilding construction starts increased 7.0% in April to a seasonally adjusted annual rate of $394 billion. Strong double digit gains in miscellaneous nonbuilding (+18.1% m/m), highways and bridges (+17.0% m/m) and environmental public works (+16.3% m/m) reversed losses from the previous month. Electric power/utilities segment fell 9.7% but levels remain bolstered by large natural gas facilities and large renewable projects. On a year-to-date basis through April, nonbuilding construction was up 12.3% alongside the 79.3% year-to-date growth in electric power/utilities. The remaining public works sectors, however, are seeing deeper year-to-date declines.
For the 12 months ending April 2026, total nonbuilding starts were up 19.5%. Environmental public works fell by 2.2% compared to the 12 months ending April 2025. Highway and bridge starts were down 0.9%, miscellaneous nonbuilding starts were up 35.6% and utility/gas starts increased 62.0% over the same period.
The largest nonbuilding projects to break ground in April included the $3.8 billion Bison Generation Station Natural Gas Power Plant in ND, the $3.3 billion Cayuga Station Natural Gas Energy Replacement in Cayuga, IN, and the $1.0 billion Tradepoint Atlantic Container Terminal in Edgemere, MD.
Residential
Residential building starts fell by 0.7% in April to a seasonally adjusted annual rate of $383 billion. Single family starts increased 4.2% m/m, and multifamily starts fell 7.2% m/m. On a year-to-date basis, residential starts are down 4.5%, with single family starts down 10.9% and multifamily starts up 7.9%.
For the 12 months ending April 2026, total residential starts fell 4.4%. Single family starts fell 15.0% compared to the 12 months ending April 2025, and multifamily starts increased 17.4% over the same period.
The largest multifamily structures to break ground in April were the $850 million Gowanus Wharf 175 3rd Street Mixed Use Development in Gowanus, NY, the $354 million Deerfield Episcopal Retirement Community III (Expansion) project Asheville, NC and $303 million Archer Towers Mixed Use Development-Garage (Phase 2) project in Jamaica, NY.
Regionally, total construction starts in April rose in the Midwest (+66.9% m/m), the Northeast (+19.9% m/m), and the South Atlantic (+9.3% m/m). Meanwhile, the South Central (-14.5% m/m), and the West (-8.6% m/m) saw declines.
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Source: New feed