August 21, 2026
Construction Growth Reveals a Divided Market
Data centers and utilities thrive while healthcare and hotels lose ground
Total construction starts jumped 25.6% in July to a seasonally adjusted annual rate of $1.79 trillion, according to Dodge Construction Network. It is the kind of number that grabs headlines, but the story underneath is less about broad momentum and more about a handful of enormous projects breaking ground all at once. Nonresidential building starts led the charge, climbing 57.7% for the month as offices and data centers more than doubled in value.
Twenty five separate billion dollar projects entered the pipeline in July alone, from a $12.8 billion data center and microgrid in New Mexico to a $12.0 billion semiconductor plant in upstate New York. For Lighting People and contractors watching the market, the message is clear. Megaprojects are increasingly setting the pace of the industry, even as other corners of construction, including hotels, healthcare, and highways, continue to lose ground.
Total Starts Growth
Annual Rate
YTD Performance
Market Analysis
"Megaproject driven volatility headlines a disjointed construction market. There is strength in pockets, multifamily within residential, data centers within commercial, energy within non building, but also verticals struggling to stabilize."
Sector Performance Highlights
Strong Growth Sectors
- Offices and Data Centers (+107.9% m/m): More than doubled within commercial nonresidential
- Manufacturing (+277.8% m/m): Bounced back sharply, continuing a volatile streak
- Utilities (+44.7% m/m): Led nonbuilding gains within the sector
Declining Sectors
- Healthcare Facilities (-59.7% m/m): Doubled down on losses from the prior month
- Hotels (-51.5% m/m): Continued to pull back within commercial
- Highway and Bridge (-16.9% m/m): Extended a multi month slide
Year-to-Date Performance (Through July 2026)
12-Month Performance (Jul 2025 vs Jul 2026)
Largest Projects Breaking Ground in July
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.
