March 25, 2026
Construction Starts Slide Sharply Amid Volatility
Large $1.5+ billion projects get rolling in Florida, North Dakota and Texas
In construction, a single month can easily be mistaken for a broader trend. February’s 13.2% drop in total starts carries that risk, but the underlying dynamics suggest something more measured. Much of the decline reflects a comedown from January’s unusually strong, utility-driven activity rather than a sudden loss of momentum. Once that surge is set aside, the market looks less like it’s pulling back and more like it’s adjusting, with gains in some sectors offset by softness in others.
At the same time, large-scale data center projects continue to play an outsized role, driving spikes that can skew monthly comparisons. For Lighting People and contractors, the takeaway is a market that feels less predictable month to month, where a handful of major projects can influence the direction as much as broader demand. Here are highlights from this month's Dodge Construction Network construction starts report:
Total Starts Change
Annual Rate
12-Month Performance
Market Analysis
"After a weak start to the year, nonresidential and residential building starts steadily rebounded throughout February. Conversely, nonbuilding activity slowed down last month – normalizing from elevated levels in January."
Sector Performance Highlights
Strong Growth Sectors
- Nonresidential (+17.8%): Led by offices & data centers surging 159.6% m/m
- Multifamily (+15.9%): Continued expansion despite residential headwinds
- Highways & Bridges (+18.8%): Steady public works investment
- Institutional (+8.7%): Driven by education (+19.6%) and other institutional (+56.4%)
Declining Sectors
- Electric Power/Utilities (-90.1%): Normalization after near-200% January spike
- Manufacturing (-54.1%): Pullback following strong January performance
- Healthcare (-46.6%): Continued retreat from prior-period highs
- Single Family (-17.5% YTD): Persistent pressure from elevated interest rates
12-Month Performance (Feb 2025 vs Feb 2026)
| Sector | Feb 2026 | Feb 2025 | % Change |
|---|---|---|---|
| Nonresidential Building | $447B | $449B | +6.1% |
| Residential Building | $368B | $393B | -6.3% |
| Nonbuilding Construction | $405B | $346B | +17.0% |
| Total Construction | $1,250B | $1,188B | +5.2% |
Largest Projects Breaking Ground in February
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. 12-month figures are unadjusted moving totals.
