News Summary
In August, construction activity in the U.S. showed a modest increase of 1.7% with overall growth in the industry. While nonresidential building starts fell significantly, nonbuilding construction thrived with a 9.3% rise. Residential construction continued to grow driven by multifamily projects despite a decline in single-family starts. Regionally, performance varied widely, with notable increases in some areas contrasted by declines in others. Major projects contributed to steady industry momentum, reflecting ongoing development efforts in various sectors.
Construction Activity Sees Moderation in August 2025, But Overall Growth Persists
In the United States, construction activity experienced a modest increase in August 2025, with the total value of construction starts rising by 1.7% compared to the previous month. The seasonally adjusted annual rate reached approximately $1.23 trillion, indicating ongoing momentum in the industry despite some sector-specific declines.
Mixed Performance Across Construction Sectors
Breaking down the sector performance, nonresidential building starts declined by 5.4% in August, with an annualized rate of around $431 billion. This reduction was driven largely by significant drops in the commercial segment, where starts fell by 12.0%. Warehouse construction experienced a sharper downturn, decreasing by 25.3%, and retail store projects slipped by 11.3% month-over-month. Despite these declines, institutional construction showed growth, increasing by 3.7%, supported by gains in education (+0.5%), healthcare (+2.8%), and other institutional sectors (+9.9%).
In contrast, nonbuilding construction saw a robust increase, rising by 9.3% in August and reaching a seasonally adjusted annual rate of approximately $594 billion. Major projects included the $5.1 billion Woodside Louisiana LNG Facility (Train #3, Phase 1) in Sulphur, Louisiana; the $2.9 billion Cheniere Corpus Christi LNG Facility (Trains 8 and 9, Stage 3B) in Gregory, Texas; and the $1.8 billion Kingston Energy Complex with Battery Storage in Kingston, Tennessee. Nonbuilding starts grew by 8.1% on a year-to-date basis through August, contributing to a total increase of 12.1% over the past year for nonbuilding projects.
Residential Construction Continues to Grow
Residential construction starts increased by 2.4% in August, reaching an annual rate of about $364 billion. This growth was driven mostly by multifamily projects, which surged by 15.5%. Conversely, single-family starts declined by 5.4% during the same period. Year-to-date, total residential starts have fallen by 5.0%, with single-family starts down 11.7%, while multifamily projects rose by 9.9%. Over the 12 months ending in August 2025, residential starts saw a slight decline of 1.2%, with single-family homes decreasing by 5.9% and multifamily developments increasing by 8.6%.
Key multifamily developments launched recently included the $619 million Kuilei Place Mixed-Use Residential Tower in Honolulu, Hawaii; the $413 million 120 Brickell Residences in Miami, Florida; and the $383 million Coles Street Mixed-Use Development in Jersey City, New Jersey.
Regional and Market Trends
Regionally, construction activity in August demonstrated uneven performance. The South Central region experienced a significant increase of 53%, signaling strong growth in that area. Opposite this, declines were observed in several regions: the Northeast decreased by 25%, the Midwest by 10%, the South Atlantic by 2%, and the West by 12%. These regional disparities reflect varying levels of economic activity and market demand across the country.
Major Projects and Market Movements
Among noteworthy nonresidential projects started in August were several large-scale developments such as the Geisinger Medical Center Tower in Danville, Pennsylvania, valued at $880 million; the Fort Meade East Campus Office Building in Maryland, costing $666 million; and the UM Shore Medical Center in Easton, Maryland, with a project cost of $540 million.
Meanwhile, the commercial sector faced challenges, with overall starts in August at a seasonally adjusted rate of $431 billion. The decline in commercial projects was attributed to reduced activity in warehousing and retail sectors, highlighting ongoing adjustments in market demand. Conversely, the manufacturing segment experienced volatility, with monthly declines of 24.4%, following an earlier drop of 84.8%, which is indicative of inconsistent activity levels in this sector.
Overall Industry Outlook
Despite sector-specific fluctuations, the year-to-date data indicates a steady trajectory of growth, with total construction starts increasing by 1.9% compared to the same period last year. Additionally, over the past 12 months, overall starts have increased by 4.7%, driven primarily by activity in nonbuilding and nonresidential sectors, which grew by 4.8% and 17.4%, respectively. Conversely, residential starts showed a slight overall decline of 1.2% in this period, reflecting broader housing market adjustments.
Overall, the construction industry remains active, with varied regional trends and sector performances shaping the current landscape. The significant projects and continued growth in nonbuilding and multifamily segments signal ongoing development efforts across multiple regions, despite some declines in commercial and single-family housing markets.
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Additional Resources
- Bisnow: New CEO of Boston Construction Firm
- Wikipedia: Construction
- Boston Agent Magazine: Apartment Construction in Boston
- Google Search: Construction Industry Trends
- Boston Globe: Construction Woman Cindy Stumpo
- Encyclopedia Britannica: Architecture
- NBC Boston: Trump Immigration Policy & Construction Industry
- Google News: Construction News
Author: STAFF HERE RALEIGH WRITER
RALEIGH STAFF WRITER The RALEIGH STAFF WRITER represents the experienced team at HERERaleigh.com, your go-to source for actionable local news and information in Raleigh, Wake County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as the North Carolina State Fair, Raleigh Arts Festival, and the Hopscotch Music Festival. Our coverage extends to key organizations like the Greater Raleigh Chamber of Commerce and Visit Raleigh, plus leading businesses in technology and education that power the local economy such as Red Hat and NC State University. As part of the broader HERE network, including HEREAsheville.com, HERECharlotte.com, HEREGreensboro.com, and HEREOBX.com, we provide comprehensive, credible insights into North Carolina's dynamic landscape.
