BOSTON (April 21, 2025) — Total construction starts were up 3% in March to a seasonally adjusted annual rate of $1.1 trillion, according to Dodge Construction Network. Nonresidential building starts grew 6%, residential starts decreased 5%, while nonbuilding starts increased 9%. On a year-to-date basis through March, total construction starts were down 1% from last year. Nonresidential starts were down 9%, residential starts were down 5%, and nonbuilding starts were up by 16% over the same period.
For the 12 months ending March 2025, total construction starts were up 4% from the 12 months ending March 2024. Residential starts were up 2%, nonresidential starts were up 3%, and nonbuilding starts rose 8% over the same period.
“Construction activity grew over the month, but sector-specific data continued to show mixed trends,” stated Eric Gaus, chief economist at Dodge Construction Network. “Looking ahead, growing uncertainty around trade policy and the direction of the economy will likely weigh on construction activity. Rising delays in the planning pipeline suggest that developers are already bracing for impact, grappling with higher tariffs, dwindling federal funding and ongoing labor shortages. We expect headwinds to grow as long as the uncertainty remains.”
Nonbuilding
Nonbuilding construction starts grew 9% in March to a seasonally adjusted annual rate of $361 billion. Highway and bridge starts decreased 10%, environmental public works fell back 26% and miscellaneous nonbuilding starts were down 23% last month. Meanwhile, utility/gas starts were up a strong 159% in March. On a year-to-date basis through March, nonbuilding starts were up 16%, with utility/gas starts up 66%, miscellaneous nonbuilding down 5%, highway and bridge starts up 13%, and environmental public work starts up 1% over the same period.
For the 12 months ending March 2025, total nonbuilding starts were up 8%. Environmental public works led the way, improving 19% compared to the 12 months ending March 2024. Highway and bridge starts were up 6%, miscellaneous nonbuilding starts were up 17%, and utility/gas starts were down 5% over the same period.
The largest nonbuilding projects to break ground in March were the $3.5 billion Sunrise Offshore Wind Farm in Montauk, New York; the $2.1 billion Greenlink West Transmission Line in Yerrington, Nevada; and the $756 million Rail Tie Wind project in Tie Siding, Wyoming.
Nonresidential
Nonresidential building starts improved 6% in March to a seasonally adjusted annual rate of $403 billion. Commercial starts were 21% higher in March, alongside stronger retail, office and warehouse starts. Institutional starts, on the other hand, were down 12% in March following weaker dormitory, government building, and transportation starts. Manufacturing starts grew 122% over the month. On a year-to-date basis through March, nonresidential starts are down 9% compared to March 2024. Commercial and institutional starts are up 3% over the same period.
For the 12 months ending March 2025, total nonresidential starts were up 3% compared to the 12 months ending March 2024. Commercial starts were up 11%, institutional starts improved 15% and manufacturing starts were down 44% over the same period.
The largest nonresidential building projects to break ground in March were the $1 billion Johnson & Johnson Biologics Manufacturing Facility in Wilson, North Carolina; the $800 million Capital One Arena Modernization in Washington, D.C.; and the $750 million Amazon Robotics Fulfillment Center in Wilmington, North Carolina.
Residential
Residential building starts fell 5% in March to a seasonally adjusted annual rate of $377 billion. Single-family starts decreased by 10%, while multifamily starts increased by 4%. On a year-to-date basis through March, residential starts are down 5% when compared to March 2024, with single-family starts down 4% and multifamily starts down 6%.
For the 12 months ending March 2025, total residential starts were up 2%. Single-family starts were up 7% and multifamily starts were down 8% compared to the 12 months ending March 2024.
The largest multifamily structures to break ground in March were the $1 billion Four Seasons Private Residences Las Vegas in Henderson, Nevada; the $357 million Flatiron Building Condominiums in New York, New York; and the $276 million The Villa Miami Condominiums in Miami, Florida.
Regionally, total construction starts in March rose in the Northeast, South Central and West, remained flat in the Midwest, and declined in the South Atlantic.
