August Nonresidential Starts Decline -5.4% According to Dodge Construction Network

Sarah Martin, associate director of Forecasting at Dodge Construction Network said in the press release. that large-scale megaprojects continue to support overall activity, but with mounting signs of economic softness.
Oct. 2, 2025
4 min read
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Total construction starts were up +1.7% in August to a seasonally adjusted annual rate of $1.23 trillion, according to Dodge Construction Network. Nonresidential building starts declined by -5.4%; residential starts improved +2.4%; and nonbuilding starts grew +9.3% over the month. On a year-to-date basis through August, total construction starts were up +1.9% from last year. Nonresidential starts were up +3.4%; residential starts were down -5%; and nonbuilding starts were +8.1% higher over the same period. 


For the 12 months ending Aug. 2025, total construction starts were up +4.7% from the 12 months ending Aug. 2024. Residential starts were down -1.2%; nonresidential starts increased +4.8%; and nonbuilding starts were up +12.1% over the same period.  
“Construction activity continues to present a mixed picture,” said Sarah Martin, associate director of Forecasting at Dodge Construction Network, in the press release. “August growth was concentrated in a few key sectors, while single-family and commercial projects experienced broad declines. Large-scale megaprojects continue to support overall activity, but with mounting signs of economic softness, the pace of growth is beginning to moderate.” 


Nonresidential

Nonresidential building starts declined -5.4% in August to a seasonally adjusted annual rate of $431 billion. Commercial starts were down -12%, as all sectors faced month-to-month (m/m) declines. Most notably, warehouse starts fell back -25.3% and retail stores declined -11.3% between July and August. Institutional starts improved +3.7% driven by stronger activity in education (+0.5% m/m), health-care (+2.8% m/m) and other institutional categories (+9.9% m/m).


Manufacturing activity remains volatile, as the sector dropped -24.4% in August, following last month’s -84.8% drop.  On a year-to-date basis through August, nonresidential starts are up +3.4% compared to Aug. 2024. Commercial and industrial starts are up +7.6% and institutional starts are down -0.7% over the same period.  


For the 12 months ending Aug. 2025, total nonresidential starts were up +4.8% compared to the 12 months ending Aug. 2024. Commercial starts were up +17.4%; institutional starts improved +6.1%; and manufacturing starts were down -27.4% over the same period.  
The largest nonresidential building projects to break ground in August were the $880-million Geisinger Medical Center Tower in Danville, PA; the $666-million Fort Meade East Campus Office Building in Fort Meade, MD; and the $540-million UM Shore Medical Center in Easton, MD.  


Residential

Residential building starts increased +2.4% in August to a seasonally adjusted annual rate of $364 billion. Single-family starts declined -5.4%, while multi-family starts expanded a steady +15.5%. On a year-to-date basis through August, residential starts are down -5%, with single-family starts down -11.7% and multi-family starts up +9.9%.  
For the 12 months ending Aug. 2025, total residential starts fell -1.2%. Single-family starts fell -5.9% compared to the 12 months ending Aug. 2024, and multi-family starts increased +8.6% over the same period.

 
The largest multi-family structures to break ground in August were the $619-million Kuilei Place Mixed-Use Residential Tower in Honolulu, HI; the $413-million 120 Brickell Residences in Miami, FL; and the $383-million Coles Street Mixed-Use Development in Jersey City, NJ.  


Nonbuilding

Nonbuilding construction starts expanded +9.3% in August to a seasonally adjusted annual rate of $431 billion. Utilities (+39.7% m/m) supported this month’s growth, while highway and bridge (-5.6% m/m), environmental public works (-2.8% m/m), and miscellaneous nonbuilding (-3.1% m/m) starts fell back.
On a year-to-date basis through August, nonbuilding starts were up +8.1%, alongside gains in highways and bridges (+7.8% m/m), miscellaneous nonbuilding (+22.6% m/m), and utilities (+12.6% m/m). Conversely, environmental public works starts are down 3.4% year-to-date through August.  For the 12 months ending Aug. 2025, total nonbuilding starts were up +12.1%.


The largest nonbuilding projects to break ground in August included the $5.1-billion Woodside Louisiana LNG Facility (Train #3, Phase 1) in Sulphur, LA; the $2.9-billion Cheniere Corpus Christi LNG Facility (Trains 8 and 9, Stage 3B) in Gregory, TX; and the $1.8-billion Kingston Energy Complex with Battery Storage in Kingston, TN.