January 26, 2026
Construction Starts See Mixed Results Across Key Segments
$700+ million projects get rolling in Arkansas, Texas and Iowa
Total construction starts expanded 2.6% in December to a seasonally adjusted annual rate of $1.24 trillion, according to Dodge Construction Network. Nonresidential building starts fell 6.6%, residential starts increased 1.0%, and nonbuilding starts grew 16.3% over the month. The mixed December performance capped a year of solid growth, with total construction starts up 5.4% for 2025. Nonbuilding construction and data center development emerged as primary growth drivers, while traditional building sectors faced headwinds from higher interest rates and economic uncertainty.
December Monthly Growth
Annual Rate
Full Year 2025 Growth
Market Analysis
"Nonbuilding construction, alongside data centers, was the primary engine of growth in 2025, supporting a 5.4% expansion in the total dollar-value of starts. In square footage terms, however, building starts declined 4.7% alongside weaker residential, manufacturing, and institutional activity."
December Sector Performance Highlights
Strong Growth Sectors
- Nonbuilding (+16.3%): Led by highways/bridges (+85.2%) and miscellaneous projects (+35.9%)
- Multifamily (+10.2%): Continued expansion in residential towers
- Commercial (+9.8%): Driven by data centers, offices (+7.4%), hotels (+74.4%), and parking (+38.8%)
- Healthcare (+7.9%): Medical facility growth partially offset institutional declines
Declining Sectors
- Manufacturing (-30.8%): Sharp pullback following previous declines
- Environmental Public Works (-26.9%): Nonbuilding weakness
- Miscellaneous Institutional (-26.9%): Broad institutional sector challenges
- Education (-18.2%): Continued pressure on institutional starts
- Retail (-12.2%): Commercial subsector decline
- Electric Utilities (-9.0%): Following strong prior months
- Single Family (-4.5%): Interest rate impact continues
Full Year 2025 Performance vs 2024
Key 2025 Trends: Commercial and industrial starts expanded 10.9% while institutional starts declined 1.9%. Single family starts fell 13.2% but multifamily grew 13.1%.
Largest Projects Breaking Ground in December
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.
