News Summary
Total construction starts in the U.S. experienced a rise, primarily driven by nonbuilding and multifamily projects despite a decline in nonresidential buildings. Residential construction notably increased due to a surge in multifamily projects, though single-family starts fell. Nonbuilding activities also showed significant growth, highlighting regional disparities in construction trends as sectors adapt to shifting demands and economic conditions.
Washington, D.C. – Total construction starts in the United States rose by 1.7% in August 2025, reaching a seasonally adjusted annual rate of $1.23 trillion. The uptick was primarily driven by significant advances in nonbuilding and multifamily construction activities, despite an overall decline in nonresidential building starts.
The month of August saw nonresidential building starts fall by 5.4% to an annual rate of $431 billion. This decline was largely influenced by a 12.0% drop in commercial starts, with warehouse construction falling by a substantial 25.3% and retail store developments decreasing by 11.3% month-over-month. However, institutional construction starts experienced a 3.7% increase, buoyed by advancements in sectors such as education, healthcare, and other institutional projects.
On a brighter note, residential construction activity increased by 2.4% in August, bringing the annual rate up to $364 billion. This growth was mainly attributed to a robust rise in multifamily starts, which surged by 15.5%, counterbalancing a decline of 5.4% in single-family residential starts. Year-to-date, residential starts have decreased by 5.0%, while multifamily construction continues to show resilience with a 9.9% uptick year-to-date.
Nonbuilding construction, which encompasses infrastructure and public projects, was a standout performer in August, with starts growing by 9.3%. This category showed a year-to-date increase of 8.1%. Major nonbuilding projects that contributed to this growth included the $5.1 billion Woodside Louisiana LNG Facility, the $2.9 billion Cheniere Corpus Christi LNG Facility, and a $1.8 billion energy complex in Kingston, Tennessee.
Year-to-Date Trends and Comparisons
Throughout the year, total construction starts have risen by 1.9% compared to the same period in 2024. Nonresidential starts have seen an increase of 3.4% year-to-date, while year-over-year comparisons indicate a 4.8% increase in nonresidential starts and a notable drop of 1.2% for residential starts over the 12 months ending in August 2025. Notably, the nonbuilding construction sector has exhibited significant growth of 12.1% during this time frame.
Highlights from Major Projects
Several high-value nonresidential projects commenced in August, including:
- $880 million Geisinger Medical Center Tower in Danville, Pennsylvania.
- $666 million Fort Meade East Campus Office Building in Fort Meade, Maryland.
- $540 million UM Shore Medical Center in Easton, Maryland.
For residential construction, major multifamily projects began included:
- $619 million Kuilei Place Mixed-Use Residential Tower in Honolulu, Hawaii.
- $413 million 120 Brickell Residences in Miami, Florida.
- $383 million Coles Street Mixed-Use Development in Jersey City, New Jersey.
Regional Performance
Regionally, construction starts showed varied performances in August. The South Central region experienced the most significant growth, with an increase of 53%. In contrast, the Northeast faced the largest decline at 25%, followed by the Midwest at 10%. The South Atlantic saw a slight decrease of 2%, while the West experienced a drop of 12%.
As the construction industry continues to navigate challenges and opportunities, the mixed trends in residential and nonresidential sectors suggest a complex landscape moving forward. Factors such as shifting demand, material costs, and economic conditions will play crucial roles in shaping future construction activities across the nation.
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- Bisnow: New CEO of Boston Construction Firm
- Wikipedia: Construction
- Boston Agent Magazine: Apartment Construction in Boston
- Google Search: Construction Industry Trends
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- Encyclopedia Britannica: Architecture
- NBC Boston: Trump Immigration Policy & Construction Industry
- Google News: Construction News
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