News Summary
Total construction starts in the U.S. rose by 1.7%, reaching an annual rate of $1.23 trillion, led by gains in nonbuilding and multifamily sectors. Despite residential construction activity increasing, nonresidential building starts declined significantly. Key projects like the $5.1 billion Woodside LNG Facility contributed to the nonbuilding surge, while negative trends were noted in commercial construction. Regional variations in construction activity were observed, with the South Central showing a notable increase, while the Northeast experienced significant declines.
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. This increase was primarily driven by significant growth in nonbuilding and multifamily sectors, despite a decline in nonresidential building starts.
In August, nonbuilding construction starts experienced a notable surge of 9.3%, contributing to the overall increase. Conversely, nonresidential building starts saw a significant drop of 5.4%, which affected the overall construction landscape.
Residential construction activities also increased, with total residential starts rising by 2.4% to an annual rate of $364 billion. This was supported by the multifamily sector, which saw a substantial gain of 15.5%, while single-family residential starts fell by 5.4%.
Year-to-date statistics indicate that total construction starts in 2025 are up 1.9% compared to the same period last year. Year-to-date, nonresidential starts have increased by 3.4%, while residential starts saw a decline of 5.0%. Among these, nonbuilding starts advanced by 8.1% over the same period.
Over the last 12 months, total construction starts have increased by 4.7% compared to the previous year, with nonresidential starts rising by 4.8%. However, the residential sector has faced challenges, showing a decrease of 1.2% during this time.
Significant projects initiated in August have helped propel the nonbuilding segment. Noteworthy starts included the $5.1 billion Woodside Louisiana LNG Facility in Sulphur, Louisiana, and the $2.9 billion expansion at Cheniere Corpus Christi LNG Facility in Gregory, Texas. Additionally, the $1.8 billion Kingston Energy Complex in Kingston, Tennessee, was also a key contributor to this sector’s performance.
In the nonresidential building category, commercial construction experienced a downturn, with a monthly decline of 12.0%. Warehouse starts notably dropped by 25.3%, and retail store projects decreased by 11.3%. On a more positive note, institutional building starts rose by 3.7%, aided by improvements across education, healthcare, and other institutional categories.
Manufacturing activity was particularly volatile in August, plummeting by 24.4% following a dramatic drop of 84.8% in the previous month. Year-to-date figures for this sector show an overall increase of 3.4% as of August 2025 when compared to the previous year.
Major nonresidential building projects in August included the initiation of the $880 million Geisinger Medical Center Tower in Danville, Pennsylvania, and a $666 million East Campus Office Building at Fort Meade, Maryland, alongside the $540 million UM Shore Medical Center in Easton, Maryland.
Regionally, construction activity was uneven, with the South Central region witnessing a remarkable increase of 53%. Meanwhile, declines were noted in several areas; the Northeast saw a decrease of 25%, the Midwest dropped by 10%, the South Atlantic declined by 2%, and the West reported a reduction of 12% in construction starts.
In summary, while overall construction starts saw an uptick in August 2025, the mixed performance across sectors highlights varying dynamics in nonbuilding, residential, and nonresidential construction activities. The data reflects ongoing shifts in the industry as different project types face unique challenges and opportunities in the current economic landscape.
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