Total construction starts popped +25.6% in July to a seasonally adjusted annual rate of $1.79 trillion, according to Dodge Construction Network. Nonresidential building starts jumped +57.7%; residential starts increased +4.9% over the month; and nonbuilding climbed +2.2%. On a year-to-date basis, total construction starts were up +16.9% through July. Nonresidential starts were up +21.9%; nonbuilding starts improved by +29.8%; and residential starts were down -1.7% over the same period.
“Megaproject-driven volatility headlines a disjointed construction market,” said Eric Gaus, chief economist at Dodge Construction Network, in the press release. “There is strength in pockets, multi-family within residential, data centers within commercial, energy within non-building, but also verticals struggling to stabilize.”  

Nonresidential

Nonresidential building starts jumped +57.7% in July to a seasonally adjusted annual rate of $917 billion. Commercial starts were up +70% over the month. Offices and data centers, more than doubled at +107.9% month-over-month (m/m), offsetting weaker warehouse growth (+1% m/m) and declining hotels (-51.5% m/m);  parking garages (-19.4% m/m); and retail stores (-9.5% m/m).
Institutional starts improved +6.2% over the month, supported by a +4.5% m/m uptick in education and dormitory starts, as well as a +45.7% m/m gain in other institutional starts. Health-care facilities doubled down on their losses, falling another -59.7% in July. Manufacturing construction starts bounced back with +277.8% m/m, continuing a volatile streak.
On a year-to-date basis through July, nonresidential starts are up +21.9%. Commercial and industrial construction gained +44.2%, while institutional starts are down -3.5% over the same period. For the 12 months ending July 2026, total nonresidential starts were up +14.8% compared to the 12 months ending July 2025. Commercial starts were up +45.2%; institutional starts decreased -5.6%; and manufacturing starts were down -1.5% over the same period.  
The largest nonresidential building projects to break ground in July were the $12.8-billion data center portion of the Project Jupiter Data Center and Microgrid Phase 1 in Santa Teresa, NM; the $12-billion Micron Semiconductor Mega-Factory Fab 1 – Phase 1 in Clay, NY; and the $4-billion Amazon STACK Highway 3 Data Center in Benton, LA.

Residential

Residential building starts rose by +4.9% in July to a seasonally adjusted annual rate of $386 billion. Single-family starts increased +4.3% m/m, and multi-family starts rose +5.7% m/m. On a year-to-date basis, single-family starts are  down -6.1% and multi-family starts are up +6.4%. 
The largest multi-family structures to break ground in July were the $535-million NY Vue-Harbor Station South Residential Tower/Retail in Bayonne, NJ; the $343-million ICON Beach Waterfront Condominiums in Hollywood, FL; and the $320-million 65 Franklin Mixed Residential & Commercial Building in New York, NY.  

Nonbuilding

Nonbuilding construction starts increased +2.2% in July to a seasonally adjusted annual rate of $485 billion. Environmental public works fell -7.8% and miscellaneous nonbuilding dropped -5.3% over the same period. Meanwhile, utilities improved +44.7% m/m. On a year-to-date basis through July, nonbuilding construction was up +29.8% alongside the +94.1% year-to-date growth in electric power/utilities; 
The largest nonbuilding projects to break ground in July included the $2.4-billion CHSRA New Track & Systems (Two Sections) in Bakersfield, CA; the $2.3-billion microgrid portion of the Project Jupiter Data Center and Microgrid Phase 1 in Santa Teresa, NM; and the $1.5-billion Transco Southeast Supply Enhancement Pipeline Expansion-SSE in Chatham, GA.