Dodge Data Point to Construction Market's Sluggish Profile Outside of Data Centers

Dodge Construction Network’s most recent report on construction activity highlighted the sluggish nature of the overall construction market but pointed to the overwhelming strength of the data center market.
Dodge said total construction starts rose +12.8% in March to a seasonally adjusted annual rate of $1.2 trillion. Nonresidential building starts grew by +6.3%; residential starts improved +2.6%; and nonbuilding starts rebounded +37.9% over the month. However, it said on a year-to-date basis, total construction starts were down -0.5% through March. Nonresidential starts were down -0.2%; residential starts were down -7.2%; and nonbuilding starts improved by +6.4% over the same period. For the 12 months ending March 2026, total construction starts were up +5.4% from the 12 months ending March 2025. Residential starts were down -5.3%; nonresidential starts were up +6.5%; and nonbuilding was up +15.8%.  
“A few strong categories overcame slight weakness in all the others in March,” said Eric Gaus, chief economist of Dodge Construction Network, in the press release. “The commercial segment shows the most strength with 12-month growth for all sub-categories except warehousing.” 

Nonresidential

Nonresidential building starts improved +6.3% in March to a seasonally adjusted annual rate of $466 billion. Commercial starts were down -9.2%, mostly driven by the -16% m/m (month-to-month) pull back in offices and data centers. Warehouses (-6.6% m/m) also lost ground in March while, hotels (+19.3% m/m), stores (+5.6% m/m) and parking garages (0.8% m/m) made gains.
Institutional starts contracted -1.5% over the month, despite growth in education (+3.4% m/m) and healthcare (+9.7% m/m). Other institutional categories more than offset that growth, dropping 11.8% m/m. After a lackluster February, manufacturing construction also bounced back, increasing by +251.9% m/m. On a year-to-date basis through March, nonresidential starts are down -0.2%. Commercial and industrial construction gained +18%, while institutional starts are down -17.8% over the same period.
The largest nonresidential building projects to break ground in March were the $3.4-billion Shintech Ethylene PEP-2 & Vinyl Chloride Monomer (SPP-4) in Plaquemine, LA; the $2.4-billion Savannah River Plutonium Processing Facility project in Aiken, SC; and the $953-million Port Terminal 1 Replacement project in Anchorage, AK.   
For the 12 months ending March 2026, total nonresidential starts were up +6.5% compared to the 12 months ending March 2025. Commercial starts were up +19.2%; institutional starts decreased -5.7%; and manufacturing starts were up +20.2% over the same period.  

Residential

Residential building starts grew by +2.6% in March to a seasonally adjusted annual rate of $385 billion. Single- family starts decreased -5.3% m/m, and multi-family starts expanded by +15.3% m/m. On a year-to-date basis, residential starts are down -7.2%, with single-family starts down -14.1% and multi-family starts up +6.1%.
The largest multi-family structures to break ground in March were the $727-million Discovery Park (PA 31) Apartments in Irvine, CA; the $577-million Harborside 4 Residential Tower project Jersey City, NJ and the $420-million 61 Broadway Residential Conversion project in New York, NY.  
For the 12 months ending March 2026, total residential starts fell -5.3%. Single-family starts fell -15.7% compared to the 12 months ending March 2025, and multi-family starts increased +16.3% over the same period.  

Nonbuilding

Nonbuilding construction starts jumped +37.9% in March to a seasonally adjusted annual rate of $369 billion. Three mega-projects continued the flip-flopping streak in the electric power/utilities segment, which popped up +353.6% m/m in March. Miscellaneous nonbuilding increased as well, rising +44% over the month. Conversely, highways and bridges (-13.6% m/m) and environmental public works (-4.1% m/m) reversed gains from the previous month.
On a year-to-date basis through March, nonbuilding construction was up +6.4% alongside the +68.6% year-to-date growth in electric power/utilities. The remaining public works sectors, however, are seeing deeper year-to-date declines.
The largest nonbuilding projects to break ground in March included the $2.5-billion Darden Clean Energy Project in Cantua Creak, CA; the $2-billion Phase 1 Natural Gas Plant/Site Infrastructure in Panhandle, TX; and the $2-billion CPV Basin Ranch Energy Center in Barstow, TX.  
For the 12 months ending March 2026, total nonbuilding starts were up +15.8%. Environmental public works fell by -6.4% compared to the 12 months ending March 2025. Highway and bridge starts were down -1%; miscellaneous nonbuilding starts were up +34.9%; and utility/gas starts increased +52.3% over the same period.