Total construction starts were up 13 percent in May to a seasonally adjusted annual rate of $1.16 trillion, according to Dodge Construction Network.
Across May, nonresidential building starts improved by 18 percent, residential starts rose 2 percent and nonbuilding starts grew 20 percent.
On a year-to-date basis through May, total construction starts are down 4 percent from last year. Nonresidential starts are down 6 percent, residential starts are down 5 percent and nonbuilding starts are 2 percent lower.
“Construction starts rebounded across most sectors in May, bouncing back from a sluggish April,” says Sarah Martin, associate director of forecasting at Dodge. “However, year-to-date figures remain below last year’s pace. Ongoing uncertainty around trade policy and the economic outlook is likely to keep construction activity in check in the months ahead.”
Nonbuilding
According to Dodge, nonbuilding construction starts improved 20 percent in May to a seasonally adjusted annual rate of $336 billion.
Most nonbuilding sectors expanded in May – including environmental public works (up 9 percent), utility starts (up 102 percent) and miscellaneous nonbuilding (up 37 percent).
Highway and bridge starts, on the other hand, decreased 5 percent in May.
On a year-to-date basis through May, nonbuilding starts are down 2 percent, Weaker year-to-date activity in environmental public works (down 5 percent) and utilities (down 22 percent) drove nonbuilding starts downward across the first five months of the year.
Conversely, highway and bridge starts and miscellaneous nonbuilding are respectively up 6 percent and 25 percent over that stretch.
The largest nonbuilding projects to break ground in May were the $1.5 billion Sierra Solar Farm and Storage project in Fallon, Nevada, the $1.2 billion construction of Delta Blues Advanced Power Station in Greenville, Mississippi, and the $1.2 billion BART Train Control Modernization in Oakland, California.
Nonresidential
Nonresidential building starts rebounded 18 percent in May to a seasonally adjusted annual rate of $459 billion.
Commercial starts were 28 percent higher in May due to stronger retail, office and warehouse starts. Institutional starts grew 19 percent in May following stronger health care starts.
Manufacturing starts, meanwhile, fell 13 percent in May.
On a year-to-date basis through May, nonresidential starts are down 6 percent compared to May 2024. Commercial starts are up 6 percent in that time, and institutional starts are down 2 percent.
The largest nonresidential building projects to break ground in May were the $900 million SpaceX Starship Starfactory GigaBay Facility in Brevard County, Florida, the $780 million UK CTC Markey Cancer Treatment & Ambulatory Surgery center in Lexington, Kentucky and the $705 million DSHS Western State Forensic Hospital in Lakewood, Washington.
Residential
Residential building starts improved 2 percent in May to a seasonally adjusted annual rate of $368 billion.
Single-family starts decreased 5 percent while multifamily starts increased 15 percent.
On a year-to-date basis through May, residential starts are down 5 percent – with single-family starts down 9 percent and multifamily starts up 5 percent.
The largest multifamily structures to break ground in May were the $720 million Pfizer HQ Residential Conversion in New York, the $403 million Domino Sugar Residential Redevelopment in Williamsburg, New York, and the $290 Monmouth Square Residential Development in Eatontown, New Jersey.
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