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Construction Starts Power On, Up 9% in April

 

Broad-based Gains Signal Unexpected Strength

BOSTON, MA — May 20, 2026 —Total construction startsrose9.0% inAprilto a seasonally adjustedannual rate of$1.33trillion,according to. Nonresidential building starts grew by 18.6%, nonbuilding starts increased 7.0%, and residential starts fell 0.7% over the month. On a year-to-date basis, total construction starts were up 5.4% through April. Nonresidential starts were up 9.1%, nonbuilding starts improved by 12.3%, and residential starts were down 4.5% over the same period. For the 12 months ending April 2026, total construction starts were up 8.1% from the 12 months ending April 2025. Residential starts were down 4.4%, nonresidential starts were up 10.0% and nonbuilding was up 19.5%.

“April’s construction starts were robust with only three categories posting month over month losses,”statedEric Gaus, Chief Economist of վ.“Largedata centers and energy generation supported the growth, but 9 of the 15 categories sawdoubleor tripledigitgrowth.”

Nonresidential

Nonresidential building startsimproved 18.6% inAprilto a seasonally adjusted annual rate of$550billion. Commercial starts wereup41.4%, mostly driven by the46.1% m/mincrease inoffices and data centers,however all sectors experienced growth; parking garages (120.4% m/m), warehouses (+25.0% m/m),hotels (+12.8% m/m),andstores (+5.0% m/m). Institutional startsgained12.3% over the month,with all sub-categoriesexperiencing growth; other institutional categories (+15.1% m/m),education (+13.2% m/m),and healthcare (+4.6%).Manufacturing constructiongave up29.3% m/mafter an astounding 251.4% growth in March. On a year-to-date basis through April, nonresidential starts areup 9.1%. Commercial and industrial construction gained30.4%, while institutional starts are down 12.1% over the same period.

For the 12 months endingApril2026, total nonresidential starts were up10.0% compared to the 12 months endingApril2025. Commercial starts were up25.1%, institutional starts decreased3.8%, and manufacturing starts were up20.9% over the same period.

The largest nonresidential building projects to break ground in April were the $5.0 billion Provident/PowerHouse Prairie Ridge Data Center Phase 1 in Midlothian, TX, the $1.9 billion SK Hynix HBM Advanced Packaging & R&D Hub project in West Lafayette, IN, and the $1.3 million Stargate Data Center Campus project in Saline Township, MI.

Nonbuilding

Nonbuildingconstructionstartsincreased7.0% inAprilto a seasonally adjusted annual rate of$394billion.Strongdouble digitgains in miscellaneous nonbuilding(+18.1%m/m),highways and bridges (+17.0% m/m) and environmental public works (+16.3% m/m) reversedlossesfrom the previous month.Electric power/utilities segment fell 9.7%butlevelsremainbolstered by large natural gas facilities and large renewable projects.On a year-to-date basis throughApril, nonbuilding construction was up12.3% alongside the79.3% year-to-date growth in electric power/utilities. The remaining public works sectors, however, are seeing deeper year-to-date declines.

For the 12 months endingApril2026, total nonbuilding starts were up19.5%.Environmental public worksfellby2.2% compared to the 12 months endingApril2025.Highway and bridgestartsweredown0.9%, miscellaneous nonbuilding starts were up35.6%andutility/gas starts increased62.0% over the same period.

The largest nonbuilding projects to break ground inAprilincludedthe$3.8billionBison Generation Station Natural Gas PowerPlantinND,the$3.3billionCayuga Station Natural Gas Energy ReplacementinCayuga,IN, and the$1.0 billionTradepoint Atlantic Container TerminalinEdgemere,MD.

Residential

Residential building startsfellby0.7% inAprilto a seasonally adjusted annual rate of$383billion. Single family startsincreased4.2%m/m,andmultifamily startsfell7.2%m/m.On a year-to-datebasis, residential starts are down4.5%,with single family startsdown10.9% and multifamily startsup7.9%.

For the 12 months endingApril2026, total residential starts fell4.4%. Single family starts fell15.0% compared to the 12 months endingApril2025, and multifamily starts increased17.4% over the same period.

The largest multifamily structures to break ground inAprilwere the $850millionGowanus Wharf 175 3rd Street Mixed Use DevelopmentinGowanus,NY, the $354millionDeerfield Episcopal Retirement Community III (Expansion)projectAsheville,NCand $303millionArcher Towers Mixed Use Development-Garage (Phase 2)project inJamaica, NY.

Regionally, total construction starts inAprilroseintheMidwest (+66.9% m/m),the Northeast (+19.9% m/m),andtheSouth Atlantic (+9.3% m/m).Meanwhile,the South Central (-14.5% m/m), and the West (-8.6% m/m) saw declines.

 

Montly May26 Chart

12mo May26 Chart

May26 Starts Bar Chart

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