Total construction starts increased 3 percent in March to a seasonally adjusted annual rate of $1.1 trillion, according to Dodge Construction Network. Nonresidential building starts grew 6 percent, residential starts decreased 5 percent, while nonbuilding starts increased 9 percent. On a year-to-date basis through March, total construction starts were down 1 percent from 2024. Nonresidential starts were down 9 percent, residential starts were down 5 percent, and nonbuilding starts were up by 16 percent over the same period.
For the 12 months ending March 2025, total construction starts were up 4 percent from the 12 months ending March 2024. Residential starts were up 2 percent, nonresidential starts were up 3 percent, and nonbuilding starts rose 8 percent over the same period.
“Construction activity grew over the month, but sector-specific data continued to show mixed trends,” says Eric Gaus, chief economist at Dodge Construction Network. “Looking ahead, growing uncertainty around trade policy and the direction of the economy will likely weigh on construction activity. Rising delays in the planning pipeline suggest that developers are already bracing for impact, grappling with higher tariffs, dwindling federal funding, and ongoing labor shortages. We expect headwinds to grow as long as the uncertainty remains.”
Nonresidential building starts increased 6 percent in March to a seasonally adjusted annual rate of $403 billion. Commercial starts were 21 percent higher in March, alongside more retail, office, and warehouse starts. Institutional starts, on the other hand, were down 12 percent in March following weaker dormitory, government building, and transportation starts. Manufacturing starts grew 122 percent over the month. On a year-to-date basis through March, nonresidential starts decreased 9 percent compared to March 2024. Commercial and institutional starts grew 3 percent over the same period.
For the 12 months ending March 2025, total nonresidential starts were up 3 percent compared to the 12 months ending March 2024. Commercial starts were up 11 percent, institutional starts improved 15 percent, and manufacturing starts were down 44 percent over the same period.
Residential building starts fell 5 percent in March to a seasonally adjusted annual rate of $377 billion. Single-family starts decreased by 10 percent, while multifamily starts increased by 4 percent. On a year-to-date basis through March, residential starts are down 5 percent when compared to March 2024, with single-family starts down 4 percent and multifamily starts down 6 percent.
For the 12 months ending March 2025, total residential starts were up 2 percent. Single-family starts were up 7 percent and multifamily starts were down 8 percent compared to the 12 months ending March 2024.
Regionally, total construction starts in March rose in the Northeast, South Central, and West, remained flat in the Midwest, and declined in the South Atlantic.