United States, September 20, 2025

News Summary

In August, construction starts in the United States saw a 1.7% increase, reaching a seasonally adjusted annual rate of $1.23 trillion. This growth was largely driven by significant gains in nonbuilding and multifamily construction sectors, despite a decrease in nonresidential building starts. Noteworthy projects included major infrastructure and multifamily developments across the country, highlighting complex trends in the construction landscape.

Construction Activities Rise in August 2025

In the United States, total construction starts experienced a 1.7% increase in August 2025, bringing the seasonally adjusted annual rate to $1.23 trillion. This rise was fueled primarily by nonbuilding and multifamily construction activities, despite a decline in nonresidential building starts.

Key Statistics

• Total construction starts were up 1.9% year-to-date from 2024.
• Nonbuilding construction saw an impressive 9.3% increase in August, with an overall 8.1% rise year-to-date.
• Residential construction starts improved 2.4% in August, although year-to-date figures show a decrease of 5.0%.
• Nonresidential building starts fell by 5.4% in August, leading to a significant decline in commercial construction.

Nonbuilding Sector Performance

The nonbuilding construction sector, which encompasses infrastructure projects, showed notable strength with a 9.3% growth in August and an 8.1% increase year-to-date. Significant projects commenced in August included:

• $5.1 billion Woodside Louisiana LNG Facility (Train #3, Phase 1) in Sulphur, Louisiana.
• $2.9 billion Cheniere Corpus Christi LNG Facility (Trains 8 and 9, Stage 3B) in Gregory, Texas.
• $1.8 billion Kingston Energy Complex with Battery Storage in Kingston, Tennessee.

Residential Sector Trends

Residential construction rebounded slightly with August starts rising to an annual rate of $364 billion. This overall increase was attributed to a 15.5% surge in multifamily construction, even as single-family starts dropped by 5.4%.

Key multifamily projects that began in August included:

• $619 million Kuilei Place Mixed-Use Residential Tower in Honolulu, Hawaii.
• $413 million 120 Brickell Residences in Miami, Florida.
• $383 million Coles Street Mixed-Use Development in Jersey City, New Jersey.

Nonresidential Sector Challenges

On the other hand, the nonresidential building sector faced challenges, decreasing to a seasonally adjusted rate of $431 billion in August. The commercial sector alone experienced a 12.0% decline, with warehouse starts falling by 25.3% and retail stores down 11.3%. Institutional construction did see a rise of 3.7%, led primarily by improvements in educational and healthcare facilities.

Year-to-date nonresidential starts were up 3.4% from the same period in 2024, while commercial starts had increased by 17.4% over the past year, showcasing some resilience despite the setbacks in August.

Regional Performance

Geographically, only the South Central region reported a significant rise of 53% in construction starts for August. In contrast, the Northeast, Midwest, South Atlantic, and West regions experienced declines of 25%, 10%, 2%, and 12% respectively.

Conclusion

In summary, while total construction starts showed a positive trajectory due to gains in the multifamily and nonbuilding sectors, challenges remain within the nonresidential building field. The mixed results reflect a complex construction landscape as new projects continue to emerge amid fluctuating market conditions.

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Additional Resources

• Bisnow: New CEO of Boston Construction Firm
• Wikipedia: Construction
• Boston Agent Magazine: Apartment Construction in Boston
• Google Search: Construction Industry Trends
• Boston Globe: Construction Woman Cindy Stumpo
• Encyclopedia Britannica: Architecture
• NBC Boston: Trump Immigration Policy & Construction Industry
• Google News: Construction News

Author: STAFF HERE PHOENIX WRITER

PHOENIX STAFF WRITER The PHOENIX STAFF WRITER represents the experienced team at HEREPhoenix.com, your go-to source for actionable local news and information in Phoenix, Maricopa County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as the Waste Management Phoenix Open, Cactus League Spring Training, and Arizona State Fair. Our coverage extends to key organizations like the Greater Phoenix Chamber of Commerce and Visit Phoenix, plus leading businesses in technology and healthcare that power the local economy such as Intel and Banner Health. As part of the broader HERE network, including HERETucson.com, we provide comprehensive, credible insights into Arizona's dynamic landscape.