April 21, 2026
March Construction Rebound Masks Uneven Market Reality
$500+ million projects get rolling in New Jersey, California and Alaska
March delivered a broad-based recovery in construction, according to Dodge Construction Network, with total starts climbing 12.8% to a seasonally adjusted annual rate of $1.22 trillion. The headline number flatters the complexity underneath: nonbuilding surged on the back of just three utility mega-projects, manufacturing staged a dramatic comeback after a dismal February, and multifamily picked up where single-family left off — downward.
For electrical contractors and lighting specification professionals, the real signal is in the nonresidential sector, where commercial construction gained 18% year-to-date even as offices and data centers pulled back month-over-month. The year-to-date picture remains slightly negative overall, down 0.5%, suggesting March's surge restores lost ground more than it breaks new territory.
What the market is telling us, again, is that a handful of large industrial-leaning transformational projects — ethylene plants, energy infrastructure, defense facilities — are doing the heavy lifting that broad-based demand has yet to provide. Here are highlights from this month's Dodge Construction Network construction starts report:
Total Starts Growth
Annual Rate
12-Month Performance
Market Analysis
"A few strong categories overcame slight weakness in all the others in March. The commercial segment shows the most strength with 12-month growth for all sub-categories except warehousing."
Sector Performance Highlights
Strong Growth Sectors
- Manufacturing (+251.9% m/m): Sharp rebound after lackluster February
- Electric Power/Utilities (+353.6% m/m): Three mega-projects drove the surge
- Multifamily (+15.3% m/m): Continued expansion; up 16.3% over 12 months
- Healthcare (+9.7% m/m): Institutional sub-sector growth
- Hotels (+19.3% m/m): Strong bounce within commercial
Declining Sectors
- Single Family (-5.3% m/m): Down 15.7% over 12 months; rate pressure persists
- Offices & Data Centers (-16.0% m/m): Monthly pullback after strong recent run
- Warehouses (-6.6% m/m): Only commercial sub-category with negative 12-month growth
- Highways & Bridges (-13.6% m/m): Reversed prior month's gains
- Institutional (-17.8% YTD): Broad institutional declines offsetting education and healthcare gains
Year-to-Date Performance (Through March 2026)
Largest Projects Breaking Ground in March
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.
