News Summary
Total construction starts in the United States fell sharply by 10.2% in July, primarily due to a 30.1% decrease in nonresidential building starts. In contrast, nonbuilding construction projects saw growth with a 20.4% increase. Despite this decline, total construction starts year-to-date remain up by 1.6%, showcasing some resilience in the industry. Key projects initiated included significant nonbuilding and nonresidential developments across various states, with notable regional performance differences.
New York City – Total construction starts in the United States saw a significant decline of 10.2% in July 2025, reaching a seasonally adjusted annual rate of $1.19 trillion. This downturn was primarily driven by a sharp drop in nonresidential building starts, which plummeted 30.1% during the same month. In contrast, nonbuilding construction projects experienced robust growth, increasing by 20.4% in July.
The data, released by the Dodge Construction Network, highlighted that nonresidential building starts fell to an annual rate of $443 billion. Commercial starts decreased by 8.5%, with office construction returning to levels comparable to the average seen in 2024, showing a steep decline of 33.1% month-over-month. Institutional starts faced a decrease of 4.6%, particularly in education construction, which plummeted by 13.3%.
Nevertheless, nonbuilding construction produced notable gains in July. The category, which encompasses utility, highway, bridge, and environmental projects, surged to an annual rate of $395 billion. The utility sector alone saw a remarkable month-over-month increase of 127.2%, while miscellaneous nonbuilding projects rose by 50.0%.
Despite the July decline, year-to-date (YTD) total construction starts were still up 1.6% from the previous year, indicating some resilience in the overall construction industry. Nonresidential starts increased by 4.3% YTD compared to July 2024, while residential starts experienced a drop of 4.4%.
Key Projects and Regional Performance
Major nonbuilding projects initiated in July included landmark endeavors such as:
- The Empire Wind Offshore Wind Energy Project in New York at $3.0 billion
- The A’s Ballpark in Las Vegas, Nevada, costing $1.8 billion
- The Boardman to Hemingway Power Transmission Line in Boardman, Oregon for $1.6 billion
In the nonresidential sector, the largest projects included the UU West Valley Eccles Health Campus in Utah at $855 million and the Mercy Hospital Campus in Missouri at $650 million. The results indicate significant regional disparities, with construction starts in July up in the Northeast while declines were reported in the Midwest, West, South Central, and South Atlantic regions.
Trends in Residential Construction
Residential construction starts also saw a decline, decreasing to an annual rate of $356 billion. While single-family starts saw a slight increase of 1.2%, multifamily starts fell by 9.5%. YTD, residential starts continue to struggle, down 4.4%, with single-family construction dipping 10.1% and multifamily construction gaining an increase of 8.3%.
Year-over-year comparisons reveal that residential starts have decreased by 0.7%, while nonresidential projects improved by 4.6%. Nonbuilding starts saw a substantial increase of 9.3% over the same period, showcasing the shifting focus towards infrastructure and utility projects. While challenges persist in the nonresidential and residential markets, the overall construction industry continues to show signs of growth compared to previous years.
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- Google Scholar: Boston Affordable Construction
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- Construction Begins on Turning Empty Office Space into Residential Units
- Google News: Office Space to Residential Construction
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