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Construction Starts Grow 3% in December

Nonbuilding & data center startsÌýdrove 2025 growth.

 

BOSTON,ÌýMAÌý—ÌýJanuaryÌý23, 2026Ìý—ÌýTotal construction startsÌýexpandedÌý2.6% inÌýDecemberÌýto a seasonally adjustedÌýannual rate ofÌý$1.24Ìýtrillion,Ìýaccording toÌý. Nonresidential building starts fell by 6.6%, residential starts increased 1.0%, and nonbuilding starts grew 16.3% over the month. For the full year, total construction starts expanded 5.4%. Nonresidential starts were up 4.5%, residential starts were down 4.8% and nonbuilding starts were 18.7% higher when compared to 2024. Ìý

“NonbuildingÌýconstruction, alongside data centers,ÌýwasÌýthe primary engine of growthÌýin 2025, supporting a 5.4% expansionÌýin theÌýtotalÌýdollar-valueÌýofÌýstarts,â€�ÌýstatedÌýSarah Martin, Associate Director of Forecasting at ¶¶ÒõÏÂÔØÍøÕ¾. “In square footage terms, however, building starts declined 4.7% alongside weaker residential, manufacturing, and institutionalÌýactivity.â€�ÌýÌý

ResidentialÌý

Residential building starts rose by 1.0% in December to a seasonally adjusted annual rate of $370 billion. Single family starts decreased 4.5% m/m, while multifamily starts gained 10.2% m/m. In 2025, residential starts decreased 4.8% – with single family starts down 13.2% and multifamily starts up 13.1%. Ìý

The largest multifamily structures to break ground inÌýDecemberÌýwere theÌý$502 million Launiu Ward Village Condominiums in Honolulu, Hawaii, the $500 million The Alloy Block Residential Tower (Phase 2) in Boerum Hill, New York and the $272 million SDSU Mission Valley Residential Building in San Diego, California.ÌýÌý

NonresidentialÌý

Nonresidential building startsÌýdecreasedÌý6.6%ÌýinÌýDecemberÌýtoÌýa seasonally adjusted annual rate ofÌý$450Ìýbillion. Commercial starts wereÌýupÌý9.8%,ÌýalongsideÌýgrowth in offices and data centers (+7.4% m/m),Ìýparking garages (+38.8% m/m), hotels (+74.4% m/m) and warehouses (+0.7% m/m). Meanwhile, retailÌýstartsÌý(-12.2% m/m) posted a decline between November and December. Institutional startsÌýdeclinedÌý16.3%, driven by weaker education (-18.2% m/m) and miscellaneous institutional (-26.9% m/m) starts. This decline was partially offset by 7.9% m/m growth in healthcare facility starts. Manufacturing, meanwhile, pulled back 30.8% in December. In 2025, nonresidential startsÌýimprovedÌý4.5%. Commercial and industrial starts expanded 10.9% andÌýinstitutional starts receded 1.9% when compared to 2024.ÌýÌý

The largest nonresidential building projects to break ground inÌýDecemberÌýwere theÌý$1 billionÌýGoogle Data Center (Phase 1) in West Memphis, Arkansas, the $750 million CyrusOne Data Center in Whitney, Texas and the $714 million SNA Data Center (Phase 2) in Cedar Rapids, Iowa.ÌýÌý

Nonbuilding

Nonbuilding construction starts grew 16.3% in December to a seasonally adjusted annual rate of $422 billion. Highways and bridges (+85.2% m/m) and miscellaneous nonbuilding (+35.9% m/m) supported growth, while environmental public works (-26.9% m/m) and electric power/utilities (-9.0% m/m) faced declines. Ìý

The largest nonbuilding projects to break ground inÌýDecember included the $3.5 billion Port Authority Midtown Bus Terminal (Phase 1) in New York, New York, the $1.6 billion Entergy Legend Power Station (754 MW) in Port Arthur, Texas and the $1.5 billion LAX Airport Roadway Improvements project in Los Angeles, California.ÌýÌý

Regionally, total construction starts in December rose in the Northeast (+12.1% m/m), the South Central (+15.6% m/m), and the West (+6.9% m/m). Meanwhile, starts slowed down in the South Atlantic (-2.9% m/m) and the Midwest (-19.0% m/m)Ìý

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