Manufacturing, Utilities, and Multifamily Lead the Way

BOSTON, MA — April 17, 2026 — Total construction starts rose 12.8% in March to a seasonally adjusted annual rate of $1.22 trillion, according to Dodge Construction Network. Nonresidential building starts grew by 6.3%, residential starts improved 2.6%, and nonbuilding starts rebounded 37.9% over the month. On a year-to-date basis, total construction starts were down 0.5% through March. Nonresidential starts were down 0.2%, residential starts were down 7.2% and nonbuilding starts improved by 6.4% over the same period. For the 12 months ending March 2026, total construction starts were up 5.4% from the 12 months ending March 2025. Residential starts were down 5.3%, nonresidential starts were up 6.5% and nonbuilding was up 15.8%.  

“A few strong categories overcame slight weakness in all the others in March,” stated Eric Gaus, Chief Economist of Dodge Construction Network. “The commercial segment shows the most strength with 12 month growth for all sub-categories except warehousing.” 

Nonbuilding

Nonbuilding construction starts jumped 37.9% in March to a seasonally adjusted annual rate of $369 billion. Three mega-projects continued the flip-flopping streak in the electric power/utilities segment, which popped up 353.6% m/m in March. Miscellaneous nonbuilding increased as well, rising 44.0% over the month. Conversely, highways and bridges (-13.6% m/m) and environmental public works (-4.1% m/m) reversed gains from the previous month. On a year-to-date basis through March, nonbuilding construction was up 6.4% alongside the 68.6% year-to-date growth in electric power/utilities. The remaining public works sectors, however, are seeing deeper year-to-date declines.  

For the 12 months ending March 2026, total nonbuilding starts were up 15.8%. Environmental public works fell by 6.4% compared to the 12 months ending March 2025. Highway and bridge starts were down 1.0%, miscellaneous nonbuilding starts were up 34.9% and utility/gas starts increased 52.3% over the same period.  

The largest nonbuilding projects to break ground in March included the $2.5 billion Darden Clean Energy Project in Cantua Creak, CA, the $2.0 billion Phase 1 Natural Gas Plant/Site Infrastructure in Panhandle, TX, and the $2.0 billion CPV Basin Ranch Energy Center in Barstow, TX.  

Nonresidential 

Nonresidential building starts improved 6.3% in March to a seasonally adjusted annual rate of $466 billion. Commercial starts were down 9.2%, mostly driven by the 16.0% m/m pull back in offices and data centers. Warehouses (-6.6% m/m) also lost ground in March, while, hotels (+19.3% m/m), stores (+5.6% m/m), and parking garages (0.8% m/m) made gains. Institutional starts contracted 1.5% over the month, despite growth in education (+3.4% m/m) and healthcare (+9.7%). Other institutional categories more than offset that growth, dropping 11.8% m/m. After a lackluster February, manufacturing construction also bounced back, increasing by 251.9% m/m. On a year-to-date basis through March, nonresidential starts are down 0.2%. Commercial and industrial construction gained 18.0%, while institutional starts are down -17.8% over the same period.  

For the 12 months ending March 2026, total nonresidential starts were up 6.5% compared to the 12 months ending March 2025. Commercial starts were up 19.2%, institutional starts decreased 5.7%, and manufacturing starts were up 20.2% over the same period.  

The largest nonresidential building projects to break ground in March were the $3.4 billion Shintech Ethylene PEP-2 & Vinyl Chloride Monomer (SPP-4) in Plaquemine, LA, the $2.4 billion Savannah River Plutonium Processing Facility project in Aiken, SC, and the $953 million Port Terminal 1 Replacement project in Anchorage, AK. 

Residential 

Residential building starts grew by 2.6% in March to a seasonally adjusted annual rate of $385 billion. Single family starts decreased 5.3% m/m, and multifamily starts expanded by 15.3% m/m. On a year-to-date basis, residential starts are down 7.2%, with single family starts down 14.1% and multifamily starts up 6.1%. 

For the 12 months ending March 2026, total residential starts fell 5.3%. Single family starts fell 15.7% compared to the 12 months ending March 2025, and multifamily starts increased 16.3% over the same period.  

The largest multifamily structures to break ground in March were the $727 million Discovery Park (PA 31) Apartments in Irvine, CA, the $577 million Harborside 4 Residential Tower project Jersey City, NJ and $420 million 61 Broadway Residential Conversion project in New York, NY.  

Regionally, total construction starts in March rose in and the South Central (+41.7% m/m), the West (+22.1% m/m) , the South Atlantic (+7.5% m/m) and the Northeast (+3.1% m/m). Meanwhile, the Midwest (-15.1% m/m) was the only region to see a decline.