November 28, 2025
Surge in Construction Starts Driven by Megaprojects
$1+ billion projects get rolling in Louisiana, California and Indiana
Total construction starts surged 21.1% in October to a seasonally adjusted annual rate of $1.53 trillion, according to Dodge Construction Network. Nonresidential building starts rose 17.9%, residential starts declined 15.4%, and nonbuilding starts expanded 59.4% over the month. The dramatic growth was driven by ten projects valued at $1 billion or more breaking ground, largely within data center, manufacturing and liquefied natural gas construction.
However, when measured by square footage rather than dollar value, both nonresidential and residential starts declined 4.3% over the month and are down 5.4% year-to-date through October, suggesting that megaproject activity continues to dominate headline growth while underlying activity remains more moderate.
Total Starts Growth
Annual Rate
YTD Performance
Market Analysis
"Growth in construction starts continued to be propped up by high-value megaproject activity last month. Specifically, ten projects valued at $1 billion and over broke ground, largely within data center, manufacturing and LNG construction. Outside of these high-tech buildings, however, growth appears more moderate. In square footage terms, for example, nonresidential and residential starts declined by 4.3% over the month and are down 5.4% year-to-date through October."
Sector Performance Highlights
Strong Growth Sectors
- Utilities (+384.5%): Massive surge driving nonbuilding growth
- Manufacturing (+107.2%): Volatile sector rebounds sharply
- Offices & Data Centers (+45.5%): Led by $7.5B Meta Hyperion project
- Miscellaneous Nonbuilding (+10.1%): Steady expansion continues
Declining Sectors
- Multifamily (-38.5%): Sharp pullback after recent strength
- Highway & Bridge (-23.7%): Monthly decline in transportation infrastructure
- Education Buildings (-20.8%): Institutional subsector weakness
- Parking Garages (-46.1%): Continued commercial real estate pressure
12-Month Performance (Oct 2024 vs Oct 2025)
Largest Projects Breaking Ground in October
Regional Performance (Month-over-Month)
Data Source: Dodge Construction Network
Construction starts are presented as seasonally adjusted annual rates to account for normal seasonal variations in building activity.
