‘TL:DR`

Nonbuilding and multifamily activity led this month’s growth

`BOSTON, MA — September 19, 2025 — Total construction starts were up 1.7% in August to a seasonally adjusted annual rate of $1.23 trillion, ‘ according to Dodge Construction Network. Nonresidential building starts declined by 5.4%, residential starts improved 2.4%, and nonbuilding starts grew 9.3% over the month. On a year-to-date basis through August, total construction starts were up 1.9% from last year. Nonresidential starts were up 3.4%, residential starts were down 5.0% and nonbuilding starts were 8.1% higher over the same period.

For the 12 months ending August 2025, total construction starts were up 4.7% from the 12 months ending August 2024. Residential starts were down 1.2%, nonresidential starts increased 4.8%, and nonbuilding starts were up 12.1% over the same period.

“Construction activity continues to present a mixed picture,” stated Sarah Martin, Associate Director of Forecasting at Dodge Construction Network. “August growth was concentrated in a few key sectors, while single-family and commercial projects experienced broad declines.`` Large-scale megaprojects continue to support overall activity, but with mounting signs of economic softness, the pace of growth is beginning to moderate.”

I wonder what these rate cuts will do to this modest growth. But we still have the massive AI and infrastructure put by the government so I understand why the data is giving mixed signals!