Construction rebounds over the month, but trails last year’s levels.

BOSTON, MA — June 20, 2025 — Total construction starts were up 13% in May to a seasonally adjusted annual rate of $1.16 trillion, according to Dodge Construction Network. Nonresidential building starts improved by 18%, residential starts rose 2%, and nonbuilding starts grew 20% over the month. On a year-to-date basis through May, total construction starts were down 4% from last year. Nonresidential starts were down 6%, residential starts were down 5%, and nonbuilding starts were 2% lower over the same period.

For the 12 months ending May 2025, total construction starts were up 1% from the 12 months ending May 2024. Residential starts were flat, nonresidential starts were up 2%, and nonbuilding starts fell 1% over the same period.  

“Construction starts rebounded across most sectors in May, bouncing back from a sluggish April,” stated Sarah Martin, associate director of forecasting at Dodge Construction Network. “However, year-to-date figures remain below last year’s pace. Ongoing uncertainty around trade policy and the economic outlook is likely to keep construction activity in check in the months ahead.”   

Nonbuilding

Nonbuilding construction starts improved 20% in May to a seasonally adjusted annual rate of $336 billion. Most nonbuilding sectors expanded over the month, including environmental public works (+9%), utility starts (+102%) and miscellaneous nonbuilding (+37%). Highway and bridge starts, on the other hand, decreased 5% in May. On a year-to-date basis through May, nonbuilding starts were down 2%, driven by weaker construction in environmental public works (-5%) and utilities (-22%) year-to-date. Conversely, highway and bridge starts and miscellaneous nonbuilding are up 6% and 25% respectively.  

For the 12 months ending May 2025, total nonbuilding starts were down 1%. Environmental public works improved 12% compared to the 12 months ending May 2024. Highway and bridge starts were up 8%, miscellaneous nonbuilding starts were up 24% and utility/gas starts were down 32% over the same period.  

The largest nonbuilding projects to break ground in May were the $1.5 billion Sierra Solar Farm and Storage (400 MW) project in Fallon, Nevada, the $1.2 billion construction of Delta Blues Advanced Power Station (754 MW) in Greenville, Mississippi and the $1.2 billion BART Train Control Modernization in Oakland, California.  

Nonresidential 

Nonresidential building starts rebounded 18% in May to a seasonally adjusted annual rate of $459 billion. Commercial starts were 28% higher in May, alongside stronger retail, office and warehouse starts. Institutional starts grew 19% last month following stronger healthcare starts. Manufacturing starts fell back 13% in May. On a year-to-date basis through May, nonresidential starts are down 6% compared to May 2024. Commercial starts are up 6% and institutional starts are down 2% over the same period.  

For the 12 months ending May 2025, total nonresidential starts were up 2% compared to the 12 months ending May 2024. Commercial starts were up 14%, institutional starts improved 8%, and manufacturing starts were down 41% over the same period.  

The largest nonresidential building projects to break ground in May were the $900 million SpaceX Starship Starfactory GigaBay Facility in Brevard County, Florida, the $780 million UK CTC Markey Cancer Treatment and Ambulatory Surgery center in Lexington, Kentucky and the $705 million DSHS Western State Forensic Hospital in Lakewood, Washington.

Residential 

Residential building starts improved 2% in May to a seasonally adjusted annual rate of $368 billion. Single-family starts decreased by 5%, while multifamily starts increased by 15%. On a year-to-date basis through May, residential starts are down 5% – with single family starts down 9% and multifamily starts up 5%.  

For the 12 months ending May 2025, total residential starts were flat. Single-family and multifamily starts were both flat compared to the 12 months ending May 2024.  

The largest multifamily structures to break ground in May were the $720 million Pfizer HQ Residential Conversion in New York, New York, the $403 million Domino Sugar Residential Redevelopment (Site B) in Williamsburg, New York and the $290 Monmouth Square Residential Development in Eatontown, New Jersey.  

Regionally, total construction starts in May rose in the Northeast, South Atlantic, South Central, and West – while starts declined in the Midwest.

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