Dodge Data Shows Strong Commercial & Industrial Construction Driving March Growth

Total construction starts were up +3% in March to a seasonally adjusted annual rate of $1.1 trillion, according to Dodge Construction Network. Nonresidential building starts grew +6%, residential starts decreased -+ 9%. On a year-to-date basis through March, total construction starts were down -1% from last year. Nonresidential starts were down -9%, residential starts were down 5%, and nonbuilding starts were up by +16% over the same period. 
For the 12 months ending March 2025, total construction starts were up +4% from the 12 months ending March 2024. Residential starts were up +2%, nonresidential starts were up +3%, and nonbuilding starts rose +8% over the same period.  
“Construction activity grew over the month, but sector-specific data continued to show mixed trends,” stated Eric Gaus, chief economist at Dodge Construction Network, in the press release. “Looking ahead, growing uncertainty around trade policy and the direction of the economy will likely weigh on construction activity. Rising delays in the planning pipeline suggest that developers are already bracing for impact, grappling with higher tariffs, dwindling federal funding, and ongoing labor shortages. We expect headwinds to grow as long as the uncertainty remains.” 

Nonresidential

Nonresidential building starts improved +6% in March to a seasonally adjusted annual rate of $403 billion. Commercial starts were +21% higher in March, alongside stronger retail, office and warehouse starts. Institutional starts, on the other hand, were down -12% in March following weaker dormitory, government building, and transportation starts. Manufacturing starts grew +122% over the month. On a year-to-date basis through March, nonresidential starts are down -9% compared to March 2024. Commercial and institutional starts are up +3% over the same period.  For the 12 months ending March 2025, total nonresidential starts were up +3% compared to the 12 months ending March 2024. Commercial starts were up +11%, institutional starts improved 15%, and manufacturing starts were down -44% over the same period.  
The largest nonresidential building projects to break ground in March were the $1-billion Johnson & Johnson Biologics Manufacturing Facility in Wilson, NC: the $800-million Capital One Arena Modernization in Washington, DC;  and the $750-million Amazon Robotics Fulfillment Center in Wilmington, NC. 

Residential

Residential building starts fell -5% in March to a seasonally adjusted annual rate of $377 billion. Single-family starts decreased by -10%, while multi-family starts increased by +4%. On a year-to-date basis through March, residential starts are down -5% when compared to March 2024, with single-family starts down -4% and multi-family starts down- 6%. For the 12 months ending March 2025, total residential starts were up +2%. Single-family starts were up 7% and multi-family starts were down -8% compared to the 12 months ending March 2024.  
The largest multi-family structures to break ground in March were the $1-billion Four Seasons Private Residences Las Vegas in Henderson, NV; the $357-million Flatiron Building Condominiums in New York, NY; and the $276-million The Villa Miami Condominiums in Miami, FL.

Nonbuilding

Nonbuilding construction starts grew +9% in March to a seasonally adjusted annual rate of $361 billion. Highway and bridge starts decreased -10%, environmental public works fell back -26%, and miscellaneous nonbuilding starts were down -23% last month. Meanwhile, utility/gas starts were up a strong 159% in March. On a year-to-date basis through March, nonbuilding starts were up +16% in March, with utility/gas starts up +66%, miscellaneous nonbuilding down -5%, highway and bridge starts up +13%, and environmental public work starts up +1% over the same period.  
For the 12 months ending March 2025, total nonbuilding starts were up +8%. Environmental public works led the way, improving +19% compared to the 12 months ending March 2024. Highway and bridge starts were up +6%, miscellaneous nonbuilding starts were up +17%, and utility/gas starts were down -5% over the same period.   
The largest nonbuilding projects to break ground in March were the $3.5-billion Sunrise Offshore Wind Farm (924 MW) in Montauk, NY; the $2.1-billion Greenlink West Transmission Line in Yerrington, NV; and the $756-million Rail Tie Wind project in Tie Siding, WY.