Value of Construction Starts Edged Up 8 Percent in 2025

by David Flaherty | 26 January 2026 2:59 pm

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The value of construction starts rose 3.1 percent year-over-year (y/y) in December and 8.2 percent for the full year compared to 2024, according to a report from ConstructConnect.

Nonresidential building starts climbed 17.5 percent y/y and 18.5 percent for the year, with commercial up 45 percent y/y, institutional down 15 percent, and industrial (manufacturing) up 18 percent. Engineering (civil) starts rose 32 percent y/y and 8.6 percent for the year, with roads up 24 percent y/y, water and sewage treatment down 17 percent, bridges down 45 percent, airports up 405 percent, and miscellaneous (power, etc.) up 220 percent. Residential starts slumped 38.5 percent y/y and 7.0 percent for the year, with single-family down 22 percent y/y and apartments down 62 percent.

Meanwhile, total construction starts rose 2.6 percent from November to December at a seasonally adjusted annual rate, Dodge Construction Network reported on January 23.

“Nonresidential building starts fell by 6.6 percent, residential starts increased 1.0 percent, and nonbuilding starts grew 16.3 percent over the month. For the full year, total construction starts expanded 5.4 percent. Nonresidential starts were up 4.5 percent, residential starts were down 4.8 percent and nonbuilding starts were up 18.7 percent. Commercial starts were up 9.8 percent over the month, alongside growth in offices and data centers (+7.4 percent), parking garages (+39 percent, hotels (+74.4 percent), and warehouses (+0.7 percent),” the Dodge report states.

There were declines for month in retail starts (-12 percent) and institutional starts (-16 percent) driven by weaker education (-18.2 percent) and miscellaneous institutional (-26.9 percent) starts. This decline was partially offset by 7.9 percent growth in healthcare facility starts. Meanwhile, manufacturing, pulled back 31 percent for the month. Highways and bridges (+85%) and miscellaneous nonbuilding (+36%) supported growth, while environmental public works (-27%) and electric power/utilities (-9.0% )” declined for the month.

Source URL: https://www.metalconstructionnews.com/news/construction-starts-2025/

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