August 26, 2025
Construction Starts Slide 10% in Recent Slowdown
$500+ million projects get rolling in Ohio, Missouri and Utah
Total U.S. construction starts declined 10.2% in July, falling to a seasonally adjusted annual rate of $1.19 trillion, according to data released by Dodge Construction Network. The pullback was led by a sharp 30.1% drop in nonresidential building starts, while residential activity fell 3.1% and nonbuilding construction grew 20.4% over the month.
On a year-to-date basis through July, total construction starts remained up 1.6% compared to 2024. Nonresidential starts increased 4.3%, nonbuilding gained 5.3%, and residential dropped 4.4% over the same period.
"Construction starts reversed course in July, offsetting the strong gains made in June," stated Eric Gaus, Chief Economist at Dodge Construction Network. "The latest data reinforced trends we have been watching since the beginning of the year: single family building and manufacturing are struggling, but data centers continue to boom."
For the 12 months ending July 2025, total construction starts were up 4.1% from the 12 months ending July 2024. The tables below summarize monthly and year-to-date construction activity:
| MONTHLY CONSTRUCTION STARTS | |||
|---|---|---|---|
| (Billions of Dollars, Seasonally Adjusted Annual Rate) | |||
| Jul 2025 | Jun 2025 | % Change | |
| Nonresidential Building | $443 | $635 | -30.1 |
| Residential Building | $356 | $367 | -3.1 |
| Nonbuilding Construction | $395 | $328 | 20.4 |
| Total Construction | $1,194 | $1,330 | -10.2 |
| YEAR-TO-DATE CONSTRUCTION STARTS | |||
|---|---|---|---|
| Unadjusted Totals, in Billions of Dollars | |||
| 7 Mo. 2025 | 7 Mo. 2024 | % Change | |
| Nonresidential Building | $259 | $248 | 4.3 |
| Residential Building | $213 | $223 | -4.4 |
| Nonbuilding Construction | $187 | $177 | 5.3 |
| Total Construction | $659 | $648 | 1.6 |
Source: Dodge Construction Network
Nonresidential Building Posts Sharp Decline
Nonresidential building starts crashed 30.1% in July to a seasonally adjusted annual rate of $443 billion. Commercial starts were down 8.5%, due to normalizing office starts which fell 33.1% over the month to equal the 2024 average in levels. Institutional starts fell 4.6% as education construction reversed June's gains with a 13.3% monthly decline, while other institutional categories pulled back 5.0% and healthcare rebounded 13.5%.
The manufacturing sector experienced a dramatic 84.7% plunge over the month, following an unusually robust June that included several multi-billion dollar project launches.
On a year-to-date basis through July, nonresidential starts remained up 4.3% compared to July 2024. Commercial and industrial starts were up 5.5%, while institutional starts increased 3.0% over the same period.
The largest nonresidential building projects to break ground in July included:
- $855 million UU West Valley Eccles Health Campus in West Valley City, Utah
- $650 million Mercy Hospital Campus in Wentzville, Missouri
- $550 million Meta Data Center Campus in Bowling Green, Ohio
For the 12 months ending July 2025, total nonresidential starts were up 4.6% compared to the 12 months ending July 2024. Commercial starts increased 12.0%, institutional starts improved 10.1%, while manufacturing starts declined 27.8% over the same period.
Residential Building Activity Declines
Residential building starts declined 3.1% in July to a seasonally adjusted annual rate of $356 billion. Single family starts increased 1.2%, while multifamily starts fell 9.5% over the month.
On a year-to-date basis through July, residential starts were down 4.4%, with single family starts declining 10.1% and multifamily starts up 8.3% compared to the same period in 2024.
Major multifamily developments breaking ground in July included:
- $552 million Rangel Houses Comprehensive Repair/Renovation in New York, New York
- $365 million 20 Long Slip Apartment Tower-Pool in Jersey City, New Jersey
For the 12 months ending July 2025, total residential starts fell 0.7%. Single family starts declined 3.8% compared to the 12 months ending July 2024, while multifamily starts increased 5.5% over the same period.
Nonbuilding Construction Posts Strong Growth
Nonbuilding construction starts improved 20.4% in July to a seasonally adjusted annual rate of $395 billion. Utilities led growth with a 127.2% monthly increase, while miscellaneous nonbuilding jumped 50.0%. Highway and bridge starts fell 2.5%, and environmental public works declined 17.7% over the month.
Year-to-date through July, nonbuilding starts were up 5.3%, supported by gains in highways and bridges (+8.4%) and miscellaneous nonbuilding (+18.8%). Utilities were down 1.0% year-to-date, while environmental public works declined 0.5% over the same period.
The largest nonbuilding projects to break ground in July included:
- $3.0 billion Empire Wind Offshore Wind Energy Project in New York
- $1.8 billion A's Ballpark in Las Vegas, Nevada
- $1.6 billion Boardman to Hemingway Power Transmission Line in Boardman, Oregon
For the 12 months ending July 2025, total nonbuilding starts were up 9.3%. Environmental public works improved 15.3%, highway and bridge starts increased 9.9%, and miscellaneous nonbuilding starts rose 29.6%. Utility and gas starts were down 7.7% over the same period.
Regional Performance
Regionally, total construction starts in July rose in the Northeast but declined in the Midwest, West, South Central, and South Atlantic regions. The mixed regional performance reflects the varied impact of project completions and new launches across different markets.
