Total construction starts improved +34.1% in May to a seasonally adjusted annual rate of $1.78 trillion, according to Dodge Construction Network. Nonresidential building starts grew by +17.8%, nonbuilding starts increased +91.9%, and residential starts fell -2.1% over the month. On a year-to-date basis, total construction starts were up +12.7% through May. Nonresidential starts were up +12.3%,  nonbuilding starts improved by +32.9%, and residential starts were down -4.9% over the same period. For the 12 months ending May 2026, total construction starts were up +12.5% from the 12 months ending May 2025. Residential starts were down -4.6%, nonresidential starts were up +11.7% and nonbuilding was up +33.2%.
“Mega-project starts within healthcare, manufacturing, utilities and data centers drove sizeable gains across the month,” said Sarah Martin, director of Economic Research at Dodge Construction Network, in the press release. “Outside of this activity, however, pockets of weakness across institutional construction, warehouses and residential construction remain.”

Nonresidential

Nonresidential building starts improved +17.8% in May to a seasonally adjusted annual rate of $647 billion. Commercial starts were up +0.8% over the month, driven by the +20.2% m/m (month-over-month) increase in offices and data centers, while all sectors experienced declines: parking garages (-53.6% m/m), hotels (-36.8% m/m), warehouses (-17.0% m/m), and stores (-6.2% m/m).
Institutional starts gained +17.4% over the month, supported by the +138.8% m/m surge in healthcare construction and offset by the -15.1% m/m decline in education starts. Manufacturing construction rebounded +116.1% m/m in May, alongside the start of the $5-billion Rivian Electric Vehicle Plant in Social Security, GA. On a year-to-date basis through May, nonresidential starts are up +12.3%. Commercial and industrial construction gained +32.9%, while institutional starts are down -8.8% over the same period.
For the 12 months ending May 2026, total nonresidential starts were up +11.7% compared to the 12 months ending May 2025. Commercial starts were up +26.6%, institutional starts decreased -4.1%, and manufacturing starts were up +32.4% over the same period.
The largest nonresidential building projects to break ground in May were the Rivian EV plant; the $3- billion Nebius Data Center (Buildings 1 & 2) in Birmingham, AL; and the $2.8-billion World Trade Center Commercial Tower in New York, NY.

Nonbuilding

Nonbuilding construction starts surged +91.9% in May to a seasonally adjusted annual rate of $758 billion. Triple digit gains in highways and bridge starts (+111.3% m/m) and utilities construction (+195.6% m/m) drove gains, while environmental public works (-18.3% m/m) and miscellaneous nonbuilding (-13.1% m/m) slowed down.
On a year-to-date basis through May, nonbuilding construction was up +32.9% alongside the +125.9% year-to-date growth in electric power/utilities and +12.1% growth in highways and bridges. The remaining sectors, however, are seeing declines. Environmental public works are down -5.5% year-to-date, and miscellaneous nonbuilding starts are down -12.1% over the same period.
For the 12 months ending May 2026, total nonbuilding starts were up +33.2%. Environmental public works fell by -2.5% compared to the 12 months ending May 2025. Highway and bridge starts were up +9.5%, miscellaneous nonbuilding starts were up +23.8% and utility/gas starts increased +121.6% over the same period.
The largest nonbuilding projects to break ground in May included the $13.5-billion LNG Export Facility in Hackberry, LA;  the $4.2-billion SR 400 Express Toll Lanes (Phase 3) project in Sandy Springs, GA; and the $4.1-billion Brent Spence Bridge (Corridor #116649) project in Convington, OH.

Residential

Residential building starts fell by -2.1% in May to a seasonally adjusted annual rate of $373 billion. Single family starts fell -1% m/m, and multifamily starts fell -3.7% m/m. On a year-to-date basis, residential starts are down -4.9%, with single family starts down -9.4% and multifamily starts up +3.6%.
For the 12 months ending May 2026, total residential starts fell -4.6%. Single family starts fell -13.5% compared to the 12 months ending May 2025, and multi-family starts increased -12.7% over the same period.
The largest multi-family structures to break ground in May were the $867-million 111 Wall Street Residential Conversion in New York, NY; the $633-million River’s Edge Continuing Care Retirement Community (Phase 1) in Bronx, NY; and the $271-million Cherry Lane Residential Tower (Phase 1) in Denver, CO.
Regionally, total construction starts in May rose in every region except the Midwest; the Northeast (+33.5% m/m), the South Atlantic (+36.5% m/m), the South Central (+87.6% m/m), and the West (+24.4% m/m). The Midwest declined by -8.4% between April and May.