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Nonbuilding and Multifamily Projects Lead Construction Growth

By Rick Laezman | Oct 10, 2025
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While the economy searches for its footing in wobbly times, positive signs emerge. For example, industry analyst Dodge Construction Network, Boston, recently released figures that show total construction starts were up 1.7% in August. 

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While the economy searches for its footing in wobbly times, positive signs emerge.

For example, industry analyst Dodge Construction Network, Boston, recently released figures that show total construction starts were up 1.7% in August. The figures, measured in total dollar amount, increased to a seasonally adjusted annual rate of $1,225 billion from $1,205 billion in July. That figure represents the projected total value of new construction projects that would be started if the current pace continues for the year.

The findings represent an averaging of divergent trends within the industry, with certain sectors outpacing others and putting the overall pace on a positive path. More specifically, nonresidential building starts declined by 5.4% in August. However, residential starts improved 2.4% and nonbuilding starts grew by 9.3%.

The same is true within each of the different sectors. For example, within residential construction, single-family starts declined 5.4%, while multifamily starts expanded by 15.5%.

Nonresidential construction also represents several different subsets of construction on divergent paths. Commercial, manufacturing, institutional, warehouses, retail and other starts were down for August. However, industrial starts, including healthcare, education and other institutional buildings, experienced varying degrees of growth.

The standout of all the sectors was nonbuilding construction. Most subsets in this category, such as highways, bridges and environmental public works, saw their starts decline. However, utility starts grew 39%, giving the sector an overall positive rate of growth.

Commenting on this pattern, Sarah Martin, associate director of forecasting at Dodge Construction Network, said that “construction activity continues to present a mixed picture,” adding that “August growth was concentrated in a few key sectors.”

The trend is mostly consistent throughout the country. According to Dodge, August construction starts increased only in the South Central region, where they grew by 53%. Starts declined in all other regions, including the Northeast, Midwest, South Atlantic and West.

About The Author

LAEZMAN is a Los Angeles-based freelance writer who has been covering renewable power for more than 10 years. He may be reached at [email protected]

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