May 26, 2026
Construction Starts Accelerate Across Key Commercial Sectors
Large 1+ billion projects get rolling in Texas, Indiana and Michigan
Total construction starts rose 9.0% in April to a seasonally adjusted annual rate of $1.33 trillion, according to Dodge Construction Network.
The month’s gain was led by a sharp increase in nonresidential building activity, where commercial starts moved higher and data centers continued to shape the market. Residential remained the soft spot, slipping slightly for the month and remaining down on both a year-to-date and 12-month basis. Nonbuilding construction also advanced, helped by infrastructure and power-related activity, even as electric power and utilities declined from March levels.
For Lighting People and contractors, the report points to a market still being pulled forward by large, energy-intensive projects, where office/data center work and major power investments can shift the monthly picture quickly. Here are highlights from this month’s Dodge Construction Network construction starts report:
Total Starts Growth
Annual Rate
Nonresidential Surge
Market Analysis
"April’s construction starts were robust with only three categories posting month over month losses. Large data centers and energy generation supported the growth, but 9 of the 15 categories saw double or triple digit growth."
Sector Performance Highlights
Strong Growth Sectors
- Commercial (+41.4%): Led by offices and data centers
- Offices and data centers (+46.1%): Major projects helped drive the April surge
- Institutional (+12.3%): Education, healthcare and other institutional categories all improved
- Nonbuilding (+7.0%): Highways, bridges and environmental public works rebounded
Declining Sectors
- Manufacturing (-29.3%): Pulled back after March’s unusually large gain
- Multifamily (-7.2%): Fell over the month despite year-to-date growth
- Electric power/utilities (-9.7%): Declined in April, though levels remain supported by large power projects
12-Month Performance (Apr 2025 vs Apr 2026)
Largest Projects Breaking Ground in April
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.
