Total construction starts increased 16% in June to a seasonally adjusted annual rate of $1.33 trillion, according to Dodge Construction Network. The growth was led by a 39% surge in nonresidential building starts, while residential starts declined 1% and nonbuilding starts rose 2%.
"Construction starts saw solid growth in June, alongside particular strength in manufacturing and data center construction," said Sarah Martin, associate director of forecasting at Dodge Construction Network. "However risks remain elevated that construction starts will be more subdued in the back half of the year – alongside ongoing uncertainty over trade policy and the broader economy."
Year-to-date through June, total construction starts increased 1% from the same period last year. Nonresidential starts gained 6%, residential starts fell 5%, and nonbuilding starts rose 1%.
Nonresidential Drives Gains
Nonresidential building starts jumped 39% in June to a seasonally adjusted annual rate of $635 billion. Commercial starts surged 78%, driven by stronger office, data center and hotel construction. Institutional starts remained flat as education construction gains were offset by declines in healthcare and other institutional categories. Manufacturing starts soared 304% following the groundbreaking of several large projects.
Major nonresidential projects breaking ground in June included the $10 billion Taiwan Semiconductor Factory in Phoenix, the $2.25 billion Eli Lilly Medicine Foundry in Lebanon, Indiana, and the $2 billion Phase 1 of the SNA Data Center in Cedar Rapids, Iowa.
Infrastructure Shows Mixed Results
Nonbuilding construction starts improved 2% in June to $330 billion. Highway and bridge starts increased 32%, along with a 32% gain in environmental public works. However, utilities starts fell 29% and miscellaneous nonbuilding dropped 42%.
The largest nonbuilding projects included the $1.6 billion Amtrak East River Tunnel Rehabilitation in Long Island City, the $1.1 billion I-35 CapEX-C Tunnel and Pump Station in Austin, and the $975 million Montgomery Locks and Dam project in Monaca, Pennsylvania.
Residential Remains Weak
Residential building starts declined 1% in June to $366 billion. Single-family starts decreased 2%, while multifamily starts remained unchanged. Year-to-date, residential starts are down 5%, with single-family falling 11% and multifamily rising 8%.
The largest multifamily projects included the $518 million Court Square Mixed Used Tower in Long Island City, the $391 million Eastchester Gardens Apartments renovation in Laconia, New York, and the $264 million Residences at Shell Bay Condos in Hallandale Beach, Florida.
Regionally, June construction starts rose in the Northeast, Midwest, West and South Atlantic but declined in the South Central region.
