July 24, 2025
Construction Starts Rise Sharply in June
$2+ billion projects get rolling in Iowa, Indiana and Arizona
Total U.S. construction starts increased 16% in June, reaching a seasonally adjusted annual rate of $1.33 trillion, according to data released July 22 by Dodge Construction Network. The sharp gain was driven primarily by a 39% increase in nonresidential building activity, while residential starts slipped 1% and nonbuilding rose 2%.
On a year-to-date basis through June, total construction starts edged up 1% compared to the same period in 2024. Nonresidential starts increased 6%, nonbuilding gained 1%, and residential dropped 5%.
The largest projects breaking ground during the month included a $10 billion semiconductor facility in Arizona and a $2.25 billion pharmaceutical plant in Indiana. The tables below summarize monthly and year-to-date construction activity:
| MONTHLY CONSTRUCTION STARTS | |||
|---|---|---|---|
| (Billions of Dollars, Seasonally Adjusted Annual Rate) | |||
| Jun 2025 | May 2025 | % Change | |
| Nonresidential Building | $635 | $456 | 39.3 |
| Residential Building | $366 | $370 | -1.1 |
| Nonbuilding Construction | $330 | $323 | 2.2 |
| Total Construction | $1,331 | $1,149 | 15.8 |
| YEAR-TO-DATE CONSTRUCTION STARTS | |||
|---|---|---|---|
| Unadjusted Totals, in Billions of Dollars | |||
| 6 Mo. 2025 | 6 Mo. 2024 | % Change | |
| Nonresidential Building | $220 | $207 | 6.2 |
| Residential Building | $192 | $202 | -5.1 |
| Nonbuilding Construction | $164 | $162 | 1.5 |
| Total Construction | $576 | $571 | 0.9 |
Source: Dodge Construction Network
Nonresidential Building Leads Growth
Nonresidential building posted the strongest gains in June, reaching an annualized $635 billion. Commercial starts increased 78%, supported by offices, data centers, and hotels. Institutional construction was flat, as a 26% increase in education-related projects was offset by declines in healthcare and other institutional categories.
Manufacturing starts more than quadrupled in June due to multiple large-scale project starts, led by:
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$10 billion Taiwan Semiconductor Factory (Fab 3, Phase 3) in Phoenix, Arizona
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$2.25 billion Eli Lilly Medicine Foundry in Lebanon, Indiana
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$2 billion Phase 1 of the SNA Data Center in Cedar Rapids, Iowa
Over the first half of 2025, commercial and industrial starts were up 9% year-over-year, while institutional construction rose 3%. Over the 12-month period ending in June, nonresidential building starts were up 8%.
Residential Construction Remains Flat
Residential building starts fell 1% in June to an annualized $366 billion. Single-family construction declined 2%, while multifamily starts were unchanged. For the first six months of 2025, single-family starts were down 11% and multifamily was up 8%.
Major multifamily developments breaking ground in June included:
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$518 million Court Square Mixed Use Tower and Garage in Long Island City, New York
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$391 million Eastchester Gardens Apartments (PACT Renovation) in Laconia, New York
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$264 million The Residences at Shell Bay Condos in Hallandale Beach, Florida
Total residential starts declined 1% over the past 12 months, with single-family down 3% and multifamily up 2%.
Nonbuilding Starts Post Modest Increase
Nonbuilding construction increased 2% in June to a seasonally adjusted annual rate of $330 billion. Growth was supported by a 32% rise in both highway and bridge starts and environmental public works. Utility and gas projects declined 29% for the month, while miscellaneous nonbuilding starts dropped 42%.
Year-to-date, nonbuilding activity remained 1% above 2024 levels. Highways and bridges were up 8%, and miscellaneous nonbuilding rose 17%. Utilities were down 15%, and environmental public works declined 1%.
Key nonbuilding projects breaking ground in June included:
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$1.6 billion Amtrak East River Tunnel Rehabilitation in Long Island City, New York
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$1.1 billion I-35 CapEX-C Tunnel and Pump Station in Austin, Texas
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$975 million Montgomery Locks and Dam project in Monaca, Pennsylvania
Over the past 12 months, total nonbuilding starts were up 3%, with notable increases in miscellaneous nonbuilding (+32%), highways and bridges (+10%), and environmental public works (+13%).
Regional Trends and Outlook
Regionally, total construction starts in June increased in the Northeast, Midwest, West, and South Atlantic. Activity declined in the South Central region.
Sarah Martin, associate director of forecasting at Dodge Construction Network, said June’s performance reflects robust growth in select sectors but noted ongoing risks for the second half of the year. “Construction starts saw solid growth in June, alongside particular strength in manufacturing and data center construction,” Martin said. “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.”
