September 17, 2025
Big Projects Power Modest Gains in Construction Starts
$500+ million projects get rolling in Maryland, Pennsylvania and Hawaii
Total construction starts were up 1.7% in August to a seasonally adjusted annual rate of $1.23 trillion, according to Dodge Construction Network. Nonresidential building starts declined by 5.4%, residential starts improved 2.4%, and nonbuilding starts grew 9.3% over the month. The mixed performance reflects ongoing economic uncertainty while large-scale projects continue supporting overall activity.
Total Starts Growth
+1.7%
August 2025 vs July 2025
Annual Rate
$1.23T
Seasonally adjusted
YTD Performance
+1.9%
Through August 2025
ARTICLE CONTINUES BELOW
Market Analysis
"Construction activity continues to present a mixed picture. August growth was concentrated in a few key sectors, while single-family and commercial projects experienced broad declines. Large-scale megaprojects continue to support overall activity, but with mounting signs of economic softness, the pace of growth is beginning to moderate."
— Sarah Martin, Associate Director of Forecasting, Dodge Construction Network
Sector Performance Highlights
Strong Growth Sectors
- Multifamily (+15.5%): Continued steady expansion
- Institutional (+3.7%): Driven by education and healthcare
- Nonbuilding (+9.3%): Led by utilities surge (+39.7%)
Declining Sectors
- Single Family (-5.4%): Continued pressure from high rates
- Commercial (-12.0%): Broad-based declines across subsectors
- Manufacturing (-24.4%): Following previous month's sharp drop
12-Month Performance (Aug 2024 vs Aug 2025)
+4.7%
Total Construction
+4.8%
Nonresidential
-1.2%
Residential
+12.1%
Nonbuilding
Largest Projects Breaking Ground in August
Regional Performance (Month-over-Month)
+53%
South Central
-25%
Northeast
-12%
West
-10%
Midwest
-2%
South Atlantic
Data Source: Dodge Construction Network
Construction starts are presented as seasonally adjusted annual rates to account for normal seasonal variations in building activity.
