December 26, 2025
Construction Starts Decline 20% With Fewer Megaprojects
$390+ million projects get rolling in California, Indiana and Washington state
Total construction starts were down 20.5% in November to a seasonally adjusted annual rate of $1.22 trillion, according to Dodge Construction Network. Nonresidential building starts fell by 13.4%, residential starts increased 13.3%, and nonbuilding starts dropped 43.7% over the month.
The decline was primarily driven by a lack of large-scale projects, with only two structures over $1 billion breaking ground during the month. Despite the monthly pullback, year-to-date performance through November showed total construction starts up 5.1% compared to the same period in 2024, reflecting continued underlying momentum in the sector.
Monthly Change
Annual Rate
YTD Performance
Market Analysis
"A lack of megaproject activity contributed to a weak November for construction starts. There were only 2 structures over a billion dollars. Looking through the noise of the last two months, the trajectory of the last half of 2025 has been much better than the first half."
Sector Performance Highlights
Strong Growth Sectors
- Multifamily (+35.6%): Significant expansion month-over-month
- Institutional (+11.4%): Public buildings (+78.8%) and education (+32.1%) driving gains
- Parking Garages (+30.5%): Notable commercial subsector growth
- Environmental Public Works (+6.8%): Sustained nonbuilding strength
Declining Sectors
- Utilities (-61.4%): Following previous strength
- Manufacturing (-50.7%): Continued volatility
- Offices and Data Centers (-40.5%): No one expects data center construction to permanently cool, but November posted a rare dip
Year-to-Date Performance (Through November 2025)
Largest Projects Breaking Ground in November
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.
