Starts Normalize Following July’s Megaproject Surge
BOSTON, MA — September 21, 2026 — Total construction starts declined 24.8% in August to a seasonally adjusted annual rate of $1.34 trillion, according to Dodge Construction Network. Nonresidential building starts fell 32.0% over the month, residential starts decreased 5.2%, and nonbuilding declined by 26.7%. On a year-to-date basis, total construction starts were up 15.2% through August. Nonresidential starts were up 23.4%, nonbuilding starts improved by 22.2%, and residential starts were down 1.8% over the same period. For the 12 months ending August 2026, total construction starts were up 14.5% from the 12 months ending August 2025. Residential starts were down 2.4%, nonresidential starts were up 17.9% and nonbuilding starts were up 27.6%.
“After a pop in activity last month, construction starts largely normalized throughout August,” stated Sarah Martin, Director of Economic Research at Dodge Construction Network. “Abstracting from the month-to-month volatility, the story remains consistent. Data center, semiconductor and energy construction are driving growth, while several other sectors are facing subdued activity alongside deeper labor shortages, and accelerating material prices.”
Nonresidential
Nonresidential building starts fell 32.0% in August to a seasonally adjusted annual rate of $624 billion. Commercial starts were down 37.6% over the month. Hotel construction more than tripled (+302.2% m/m) after a weak July, and retail stores improved by 26.9%. Meanwhile, all other commercial sectors faced declines, including offices and data centers (-31.3% m/m), parking garages (-24.9% m/m), and warehouses (-13.4% m/m). Institutional starts also slowed, pulling back 18.1% in August, driven by weaker education starts (-14.3% m/m) and miscellaneous institutional starts (-39.1% m/m). Following a weak July, healthcare starts normalized in August, rising 96.1% over the month. Manufacturing construction declined 80.8% m/m, after substantial megaproject starts last month. On a year-to-date basis through August, nonresidential starts are up 23.4%. Commercial and industrial construction have gained 47.7%, while institutional starts are down 3.9% over the same period.
For the 12 months ending August 2026, total nonresidential starts were up 17.9% compared to the 12 months ending August 2025. Commercial starts were up 48.6%, institutional starts decreased 4.3%, and manufacturing starts were up 2.8% over the same period.
The largest nonresidential building projects to break ground in August were $3.5 billion Amazon STACK Blanchard State Line Data Center (780 MW) in Mooringsport, Louisiana, the $3.2 billion Clarksville Hyperscale Data Center in Clarksville, Arkansas, and the $2.9 billion Bronx Detention Facility in Mott Haven, New York.
Nonbuilding
Nonbuilding construction starts decreased 26.7% in August to a seasonally adjusted annual rate of $355 billion. Continuing their slide, highway and bridge starts fell back 20.8% in August while environmental public works ticked up 0.4%, miscellaneous nonbuilding dropped 70.5%, and utilities declined by 11.4% over the same period. On a year-to-date basis through August, nonbuilding construction was up 22.2% alongside the 69.9% year-to-date growth in electric power/utilities, 23.0% in miscellaneous nonbuilding, and 2.3% growth in highways and bridges. Environmental public works are down 4.2% year-to-date.
For the 12 months ending August 2026, total nonbuilding starts were up 27.6%. Environmental public works fell by 3.7% compared to the 12 months ending August 2025. Highway and bridge starts were up 2.7%, miscellaneous nonbuilding starts were up 37.6% and utility/gas starts increased 87.8% over the same period.
The largest nonbuilding projects to break ground in August included the $3.5 billion Steel River Energy Center (Phases 1 & 2) in Wilson, Arkansas, the $1.4 billion Bluegrass Power Generation (Phase 1) project in Jeffersonville, Ohio, and the $772 million Heritage Prairie Renewable Wind Farm (600 MW) in Dwight, Illinois.
Residential
Residential building starts declined by 5.2% in August to a seasonally adjusted annual rate of $364 billion. Single family starts remained flat, growing 0.4% m/m, and multifamily starts dropped -13.5% m/m. On a year-to-date basis, residential starts are down 1.8%, with single family starts down -4.6% and multifamily starts up 3.0%.
For the 12 months ending August 2026, total residential starts fell 2.4%. Single family starts fell 8.6% compared to the 12 months ending August 2025, and multifamily starts increased 8.7% over the same period.
The largest multifamily structures to break ground in August were the $1.1 billion 655 Madison Ave mixed use tower in New York, New York, the $244 million The Residences at The Nashville Edition (hotel/condominiums) in Nashville, Tennessee, and the $227 million 350 S. Fifth Avenue mixed use and affordable housing development in Ann Arbor, Michigan.
Regionally, total construction starts in August fell in every region except the South Central; the Northeast (-52.6% m/m), the Midwest (-1.1% m/m), the South Atlantic (-24.2% m/m), and the West (-51.4% m/m) all saw declines. The South Central improved by 28.8% between July and August.
AUGUST 2026 CONSTRUCTION STARTS
