Construction Starts Improve 3.1% in September

Other nonbuilding and data centers led this month’s growth

BOSTON, MA — October 19, 2025 — Total construction starts were up 3.1% in September to a seasonally adjusted annual rate of $1.26 trillion, according to Dodge Construction Network. Nonresidential building starts rose by 11.9%, residential starts improved 3.6%, and nonbuilding starts fell 6.2% over the month. On a year-to-date basis through September, total construction starts were up 3.5% from last year. Nonresidential starts were up 5.0%, residential starts were down 4.2% and nonbuilding starts were 10.8% higher over the same period.  

For the 12 months ending September 2025, total construction starts were up 6.7% from the 12 months ending September 2024. Residential starts were down 1.4%, nonresidential starts increased 6.8%, and nonbuilding starts were up 16.7% over the same period.  

“September construction starts data marks the third month of steady improvements,” stated Eric Gaus, Chief Economist at Dodge Construction Network. “However, a 3% growth rate is just keeping up with inflation, and we need fourth quarter growth of 25% to match annual growth of 2024. Megaprojects continue to provide significant report; just six projects accounted for 12% of the total value in September.” 

Nonresidential 

Nonresidential building starts increased 11.9% in September to a seasonally adjusted annual rate of $478 billion. Commercial starts were up 21.2%, as only retail failed to grow over the month. Most notably, parking and service stations starts rose 30.1% and offices increased 32.6% between August and September. Institutional starts improved 0.9%, where strong activity in education and dorms (+25.8% m/m), other institutional categories (+11.9% m/m) offset a large decline in health care facilities (-47.8% m/m). Manufacturing activity remains volatile, as the sector jumped 45.2% in September, following last month’s 24.4% drop. On a year-to-date basis through September, nonresidential starts are up 5.0% compared to September 2024. Commercial and industrial starts are up 10.9% and institutional starts are down 0.8% over the same period.  

For the 12 months ending September 2025, total nonresidential starts were up 6.8% compared to the 12 months ending September 2024. Commercial starts were up 22.5%, institutional starts improved 5.0%, and manufacturing starts were down 23.6% over the same period.  

The largest nonresidential building projects to break ground in September were the $2.5 billion Hut 8 Data Center (West Feliciana Parish) in St Francisville, Louisiana, the $1.7 billion NYS Life Sciences Public Health Laboratory in Albany, New York, and the $1.2 billion Llano Data Center Phase 1 in Claude, Texas. 

Residential 

Residential building starts increased 3.6% in September to a seasonally adjusted annual rate of $379 billion. Single family starts increased 1.7%, while multifamily starts expanded 6.4%. On a year-to-date basis through September, residential starts are down 4.2% – with single family starts down 12.1% and multifamily starts up 13.2%.  

For the 12 months ending September 2025, total residential starts fell 1.4%. Single family starts fell 7.6% compared to the 12 months ending September 2024, and multifamily starts increased 11.6% over the same period.  

The largest multifamily structures to break ground in September were the $584 million Harborside 8 Mixed Use Residential – Commercial & Parking in Jersy City, New Jersy, the $575 million 5 Times Square Residential Conversion in New York, New York, and the $480 million Imperial Tower – Mixed Use-Hotel-Pool-Parking  in Jersey City, New Jersey.  

Regionally, total construction starts in September rose in the Northeast (+36.3% m/m), Midwest (+10.9% m/m), and West (+1.4% m/m) and declined in the South Atlantic (-0.3% m/m), and South Central (-10.6% m/m). 

Nonbuilding  

Nonbuilding construction starts fell 6.2% in September to a seasonally adjusted annual rate of $404 billion. Utilities (-62.5% m/m) was the sole category contracting, while highway and bridges (+7.4% m/m), environmental public works (+6.6% m/m), and miscellaneous nonbuilding (+116.5% m/m) starts offset the decline. On a year-to-date basis through September, nonbuilding starts were up 10.8%, alongside gains in highways and bridges (+7.4%), miscellaneous nonbuilding (+42.1%), and utilities (+12.9%). Conversely, environmental public works starts are down 2.2% year-to-date through September.  

For the 12 months ending September 2025, total nonbuilding starts were up 16.7%. Environmental public works improved by 10.8% compared to the 12 months ending September 2024. Highway and bridge starts were up 10.2%, miscellaneous nonbuilding starts were up 46.1% and utility/gas starts increased 17.1% over the same period.  

The largest nonbuilding projects to break ground in September included the $3.0 billion AirTrain Newark Replacement in Newark, New Jersey, the $2.7 billion Hugh Brinson Pipeline in Midland, Texas and the $1.1 billion Walnut Creek WWTP Renovation and Expansion in Austin, Texas.