Nonresidential Construction Starts Drop -30.1% in July, According to Dodge Data

Eric Gaus, chief economist at Dodge Construction Network, says single-family building and manufacturing are struggling, but data centers continue to boom.
Sept. 4, 2025
4 min read
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Total construction starts were down -10.2% in July to a seasonally adjusted annual rate of $1.19 trillion, according to Dodge Construction Network. Nonresidential building starts declined by -30.1%; residential starts fell -3.1%; and nonbuilding starts grew +20.4% over the month. On a year-to-date basis through July, total construction starts were up +1.6% from last year. Nonresidential starts were up +4.3%; residential starts were down -4.4%; and nonbuilding starts were +5.3% higher over the same period. 


For the 12 months ending July 2025, total construction starts were up +4.1% from the 12 months ending July 2024. Residential starts were down -0.7%; nonresidential starts were up +4.6%; and nonbuilding starts improved +9.3% over the same period.  


“Construction starts reversed course in July, offsetting the strong gains made in June,” said Eric Gaus, chief economist at Dodge Construction Network, in the press release. “The latest data reinforced trends we have been watching since the beginning of the year: single-family building and manufacturing are struggling, but data centers continue to boom.” 


Nonresidential

Nonresidential building starts crashed -30.1% in July to a seasonally adjusted annual rate of $443 billion. Commercial starts were down -8.5%, due to normalizing office starts (-33.1% month-over-month (m/m)) which equaled the 2024 average in levels. Institutional starts fell -4.6% as education construction reversed June’s gains (-13.3% m/m), while other institutional categories (-5% m/m) pulled back, and healthcare rebounded (+13.5% m/m). The manufacturing rollercoaster plunged -84.7% over the month, following an unusually robust June. On a year-to-date basis through July, nonresidential starts are up +4.3% compared to July 2024. Commercial and industrial starts are up +5.5% and institutional starts are up +3% over the same period.  


For the 12 months ending July 2025, total nonresidential starts were up +4.6% compared to the 12 months ending July 2024. Commercial starts were up +12%; institutional starts improved +10.1%; and manufacturing starts were down -27.8% over the same period.  
The largest nonresidential building projects to break ground in July were the $855-million UU West Valley Eccles Health Campus in West Valley City, UT; the $650-million Mercy Hospital campus in Wentzville, MO; the $550-million Meta Data Center Campus in Bowling Green, OH. 

Residential

Residential building starts declined -3.1% in July to a seasonally adjusted annual rate of $356 billion. Single-family starts increased by +1.2%, while multi-family starts fell -9.5%. On a year-to-date basis through July, residential starts are down -4.4%, with single-family starts down -10.1% and multi-family starts up +8.3%.  
For the 12 months ending July 2025, total residential starts fell -0.7%. Single-family starts fell -3.8% compared to the 12 months ending July 2024, and multi-family starts increased +5.5% over the same period.  


The largest multi-family structures to break ground in July were the $552-million Rangel Houses Comprehensive Repair/Renovation project in New York, NY; and the $365-million 20 Long Slip Apartment Tower-Pool in Jersey City, NJ. 


Nonbuilding

Nonbuilding construction starts improved +20.4% in July to a seasonally adjusted annual rate of $395 billion. Utilities (+127.2% m/m) and miscellaneous nonbuilding (+50%) supported gains, while highway and bridge starts (-2.5% m/m), and environmental public works (-17.7% m/m) starts fell back. On a year-to-date basis through July, nonbuilding starts were up +5.3%, alongside gains in highways and bridges (+8.4%) and miscellaneous nonbuilding (+18.8%). Utilities are down -1% year-to-date, and environmental public works are down -0.5% over the same period.  


For the 12 months ending July 2025, total nonbuilding starts were up +9.3%. Environmental public works improved by +15.3% compared to the 12 months ending July 2024. Highway and bridge starts were up +9.9%, miscellaneous nonbuilding starts were up +29.6% and utility/gas starts were down -7.7% over the same period.  


The largest nonbuilding projects to break ground in July were the $3-billion Empire Wind Offshore Wind Energy Project, in New York; the $1.8-billion A’s Ballpark in Las Vegas, NV; and the $1.6-billion Boardman to Hemingway Power Transmission Line in Boardman, OR.