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Nonresidential starts surge over the month.

BOSTON, MA — July 22, 2025 — Total construction starts were up 16% in June to a seasonally adjusted annual rate of $1.33 trillion, according to Dodge Construction Network. Nonresidential building starts improved by 39%, residential starts fell 1%, and nonbuilding starts grew 2% over the month. On a year-to-date basis through June, total construction starts were up 1% from last year. Nonresidential starts were up 6%, residential starts were down 5% and nonbuilding starts were 1% higher over the same period. 

For the 12 months ending June 2025, total construction starts were up 4% from the 12 months ending June 2024. Residential starts were down 1%, nonresidential starts were up 8%, and nonbuilding starts improved 3% over the same period.  

“Construction starts saw solid growth in June, alongside particular strength in manufacturing and data center construction,” stated Sarah Martin, associate director of forecasting at Dodge Construction Network. “However risks remain elevated that construction starts will be more subdued in the back half of the year – alongside ongoing uncertainty over trade policy and the broader economy.” 

Nonbuilding

Nonbuilding construction starts improved 2% in June to a seasonally adjusted annual rate of $330 billion. Highway and bridge starts (+32% m/m) and environmental public works (+32% m/m) supported gains, while utilities (-29% m/m) and miscellaneous nonbuilding (-42%) starts fell back. On a year-to-date basis through June, nonbuilding starts were up 1%, alongside gains in highways and bridges (+8%) and miscellaneous nonbuilding (+17%). Conversely, utilities are down 15% year-to-date, and environmental public works are down 1% over the same period.  

For the 12 months ending June 2025, total nonbuilding starts were up 3%. Environmental public works improved by 13% compared to the 12 months ending June 2024. Highway and bridge starts were up 10%, miscellaneous nonbuilding starts were up 32% and utility/gas starts were down 27% over the same period.  

The largest nonbuilding projects to break ground in June were the $1.6 billion Amtrak East River Tunnel Rehabilitation in Long Island City, New York, the $1.1 billion I-35 CapEX-C Tunnel and Pump Station in Austin, Texas and the $975 million Montgomery Locks and Dam project in Monaca, Pennsylvania.   

Nonresidential 

Nonresidential building starts surged 39% in June to a seasonally adjusted annual rate of $635 billion. Commercial starts were 78% higher in June, alongside stronger office, data center and hotel starts. Institutional starts were flat last month as strong gains in education construction (+26% m/m) were offset by healthcare (-20% m/m) and other institutional categories (-13% m/m) seeing more typical levels of activity after strong growth in May. Manufacturing starts soared 304% over the month, following the start of a handful of very large projects. On a year-to-date basis through June, nonresidential starts are up 6% compared to June 2024. Commercial and industrial starts are up 9% and institutional starts are up 3% over the same period.  

For the 12 months ending June 2025, total nonresidential starts were up 8% compared to the 12 months ending June 2024. Commercial starts were up 18%, institutional starts improved 12%, and manufacturing starts were down 24% over the same period.  

The largest nonresidential building projects to break ground in June were the $10 billion Taiwan Semiconductor Factory (Fab 3, Phase 3) in Phoenix, Arizona, the $2.25 billion Eli Lilly Medicine Foundry in Lebanon, Indiana and the $2 billion Phase 1 of the SNA Data Center in Cedar Rapids, Iowa.     

Residential 

Residential building starts declined 1% in June to a seasonally adjusted annual rate of $366 billion. Single family starts decreased by 2%, while multifamily starts remained flat. On a year-to-date basis through June, residential starts are down 5% – with single family starts down 11% and multifamily starts up 8%.  

For the 12 months ending June 2025, total residential starts were down 1%. Single family starts were down 3% compared to the 12 months ending June 2024, and multifamily starts were up 2% over the same period.  

The largest multifamily structures to break ground in June were the $518 million Court Square Mixed Used Tower and Garage in Long Island City, New York, the $391 million Eastchester Gardens Apartments (PACT Renovation) in Laconia, New York and the $264 million The Residences at Shell Bay Condos in Hallandale Beach, Florida.  

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

The post Construction Starts Grew 16% in June appeared first on Dodge Construction Network.

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