Total construction starts declined -24.8% in August to a seasonally adjusted annual rate of $1.34 trillion, according to Dodge Construction Network. Nonresidential building starts fell -2% over the month; residential starts decreased -5.2%; and nonbuilding declined by -26.7%. On a year-to-date basis, total construction starts were up +15.2% through August. Nonresidential starts were up +23.4%; nonbuilding starts improved by +22.2%; and residential starts were down -1.8% over the same period. For the 12 months ending August 2026, total construction starts were up +14.5% from the 12 months ending Aug. 2025. Residential starts were down -2.4%; nonresidential starts were up +17.9%; and nonbuilding starts were up +27.6%.

“After a pop in activity last month, construction starts largely normalized throughout August,” said Sarah Martin, director of Economic Research at Dodge Construction Network, in the press release. “Abstracting from the month-to-month volatility, the story remains consistent. Data center, semiconductor and energy construction are driving growth, while several other sectors are facing subdued activity alongside deeper labor shortages and accelerating material prices.”

Nonresidential

Nonresidential building starts fell -32% in August to a seasonally adjusted annual rate of $624 billion. Commercial starts were down -37.6% over the month. Hotel construction more than tripled (+302.2% month-to-month (m/m)) after a weak July, and retail stores improved by +26.9%. Meanwhile, all other commercial sectors faced declines, including offices and data centers (-31.3% m/m); parking garages (-24.9% m/m); and warehouses (-13.4% m/m). Institutional starts also slowed, pulling back -18.1% in August, driven by weaker education starts (-14.3% m/m) and miscellaneous institutional starts (-39.1% m/m). Following a weak July, healthcare starts normalized in August, rising +96.1% over the month. Manufacturing construction declined -80.8% m/m after substantial megaproject starts last month. On a year-to-date basis through August, nonresidential starts are up +23.4%. Commercial and industrial construction have gained +47.7%, while institutional starts are down -3.9% YTD.

For the 12 months ending Aug. 2026, total nonresidential starts were up +17.9% compared to the 12 months ending August 2025. Commercial starts were up +48.6%; institutional starts decreased -4.3%; and manufacturing starts were up +2.8% over the same period.

The largest nonresidential building projects to break ground in August were $3.5-billion Amazon STACK Blanchard State Line Data Center (780 MW) in Mooringsport, LA; the $3.2-billion Clarksville Hyperscale Data Center in Clarksville, AR; and the $2.9-billion Bronx Detention Facility in Mott Haven, NY.  

Residential

Residential building starts declined by -5.2% in August to an annual rate of $364 billion. Single-family starts remained flat, growing +0.4% m/m, and multi-family starts dropped -13.5% m/m. On a year-to-date basis, residential starts are down -1.8%, with single-family starts down -4.6% and multi-family starts up +3%.

For the 12 months ending Aug. 2026, total residential starts fell -2.4%. Single-family starts fell -8.6% compared to the 12 months ending August 2025, and multi-family starts increased +8.7% over the same period.

The largest multi-family structures to break ground in August were the $1.1-billion 655 Madison Ave mixed-use tower in New York, NY; the $244-million The Residences at The Nashville Edition (hotel/condominiums) in Nashville, TN; and the $227-million 350 S. Fifth Avenue mixed use and affordable housing development in Ann Arbor, MI.

Nonbuilding

Nonbuilding construction starts decreased -26.7% in August to a seasonally adjusted annual rate of $355 billion. Continuing their slide, highway and bridge starts fell back -20.8% in August while environmental public works ticked up +0.4%; miscellaneous nonbuilding dropped -70.5%; and utilities declined by -11.4% over the same period. On a year-to-date basis through August, nonbuilding construction was up +22.2% alongside the +69.9% year-to-date growth in electric power/utilities; +23% in miscellaneous nonbuilding; and +2.3% growth in highways and bridges. For the 12 months ending Aug. 2026, total nonbuilding starts were up +27.6%.

The largest nonbuilding projects to break ground in August included the $3.5-billion Steel River Energy Center (Phases 1 & 2) in Wilson, AR; the $1.4-billion Bluegrass Power Generation (Phase 1) project in Jeffersonville, OH; and the $772-million Heritage Prairie Renewable Wind Farm (600 MW) in Dwight, IL.