Washington, D.C., September 20, 2025
News Summary
Total construction starts saw a 1.7% increase, reaching a seasonally adjusted rate of $1.23 trillion. The rise was driven mainly by strong growth in the nonbuilding and multifamily sectors, while nonresidential building starts experienced a decline. Notable projects included major LNG facilities and medical centers. Despite regional disparities, the overall trend suggests recovering construction activities, particularly in nonbuilding sectors, amid ongoing volatility in the residential market.
Washington, D.C. – Total construction starts rose by 1.7% in August 2025, hitting a seasonally adjusted annual rate of $1.23 trillion, according to the latest data. This increase was primarily driven by significant growth in the nonbuilding and multifamily sectors, while the nonresidential building sector faced a downturn.
Nonbuilding construction starts experienced a substantial increase of 9.3% in August, contributing positively to the overall construction growth. Conversely, nonresidential building starts saw a sharp decline of 5.4%, dropping to a seasonally adjusted rate of $431 billion during the same month.
In terms of residential construction, starts increased by 2.4% in August to an annual rate of $364 billion. However, this was mainly influenced by a 15.5% increase in multifamily starts, compensating for a 5.4% decline in single-family residential starts. Year-to-date figures revealed that total construction starts were up 1.9% compared to the previous year, with nonresidential starts increasing by 3.4% year-to-date while residential starts showed a decrease of 5.0%.
Key Performance Indicators
For the 12 months ending August 2025, total construction starts rose by 4.7% compared to the prior year. Nonresidential starts saw a 4.8% increase, while residential starts decreased by 1.2%. The nonbuilding sector stood out with a remarkable growth of 12.1% over the same time frame.
Notable Projects in August
Major nonbuilding projects that contributed to the growth included the $5.1 billion Woodside Louisiana LNG Facility and the $2.9 billion Cheniere Corpus Christi LNG Facility in Texas. Additionally, the $1.8 billion Kingston Energy Complex in Tennessee, which includes battery storage, was a significant development.
In the nonresidential building category, significant projects included the $880 million Geisinger Medical Center Tower in Pennsylvania and the $540 million UM Shore Medical Center in Maryland. The manufacturing sector, however, faced volatility, with activity dropping dramatically by 24.4% in August, following an earlier month’s staggering decrease of 84.8%.
Regional Analysis
Regionally, construction starts saw a notable 53% increase in the South Central region, while declines were observed in the Northeast (-25%), Midwest (-10%), South Atlantic (-2%), and West (-12%).
Summary of Construction Starts
| Category | Change in August 2025 | Year-to-Date Change | One Year Change |
|---|---|---|---|
| Total Construction Starts | +1.7% | +1.9% | +4.7% |
| Nonresidential Building Starts | -5.4% | +3.4% | +4.8% |
| Residential Starts | +2.4% | -5.0% | -1.2% |
| Nonbuilding Starts | +9.3% | +8.1% | +12.1% |
Understanding the Market Trends
These statistics suggest a bifurcation in the construction industry, where nonbuilding infrastructure projects continue to surge in contrast to faltering residential and commercial building starts. The overall outlook indicates a cautious yet slight recovery in construction activities, with particular resilience in nonbuilding sectors driven by public and industrial needs.
FAQ
What was the total construction starts rate in August 2025?
The total construction starts rate in August 2025 was $1.23 trillion, reflecting a 1.7% increase from the previous month.
Which sector saw the highest growth in construction starts?
The nonbuilding construction sector experienced the highest growth, rising by 9.3% in August 2025.
How did residential construction start trends compare year-to-date?
Year-to-date, residential starts declined by 5.0%, with single-family starts down by 11.7% while multifamily starts increased by 9.9%.
What are the major construction projects started in August 2025?
Significant projects included the $5.1 billion Woodside Louisiana LNG Facility, the $2.9 billion Cheniere Corpus Christi LNG Facility, and the $880 million Geisinger Medical Center Tower.
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Additional Resources
- Bisnow: New CEO of Boston Construction Firm
- Wikipedia: Construction
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- Encyclopedia Britannica: Architecture
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- Google News: Construction News
Author: STAFF HERE HOUSTON TX WRITER
HOUSTON STAFF WRITER The HOUSTON STAFF WRITER represents the experienced team at HEREHouston.com, your go-to source for actionable local news and information in Houston, Harris 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 Houston Livestock Show and Rodeo, Art Car Parade, and Chevron Houston Marathon. Our coverage extends to key organizations like the Greater Houston Partnership and Houston Area Urban League, plus leading businesses in energy and healthcare that power the local economy such as ExxonMobil, Schlumberger, and Houston Methodist. As part of the broader HERE network, including HEREAustinTX.com, HERECollegeStation.com, HEREDallas.com, and HERESanAntonio.com, we provide comprehensive, credible insights into Texas's dynamic landscape.
