New York City, August 21, 2025
News Summary
Total construction starts have significantly decreased, with a notable drop of 10.2%. Nonresidential building starts fell by 30.1%, while the nonbuilding sector experienced some growth. Despite challenges, year-to-date figures indicate a slight overall increase in construction starts, suggesting resilience in certain areas. Regional performances varied, with gains in the Northeast and losses in other regions. Key upcoming projects reflect ongoing investments, but industry analysts are closely monitoring the market for potential recovery and shifts.
Construction Starts Decline Across the Board in July 2025
New York City – Total construction starts experienced a significant decrease of 10.2% in July 2025, dropping to a seasonally adjusted annual rate of $1.19 trillion as revealed in a recent report. This decline was largely driven by a sharp fall in nonresidential building starts, which plummeted by 30.1% during the same period. While total construction figures faced challenges, the nonbuilding sector showed some resilience, with a reported increase of 20.4% in July.
Details of the Decline
The slump in nonresidential construction was particularly noticeable, with overall nonresidential starts falling to an annual rate of $443 billion. The commercial sector was notably affected, experiencing an 8.5% decline, while institutional starts decreased 4.6%. Manufacturing saw a notable contraction, dropping dramatically by 84.7%. Conversely, residential construction starts fell by 3.1% to an annual rate of $356 billion, with single-family homes slightly increasing by 1.2% and multifamily starts decreasing by 9.5%.
Nonbuilding Construction Growth
Despite the overall downturn in construction, nonbuilding construction made significant strides, reaching an annual rate of $395 billion in July. Noteworthy projects that began construction included the Empire Wind Offshore Wind Energy Project in New York, costing $3.0 billion, and the A’s Ballpark in Las Vegas, priced at $1.8 billion. Utilities enjoyed a month-over-month increase of 127.2%, while miscellaneous nonbuilding projects expanded by 50.0%.
Year-to-Date Analysis
Year-to-date, total construction starts have risen by 1.6% compared to the previous year. Nonresidential starts have increased by 4.3%, reflecting some resilience in the market, while residential starts have experienced a decrease of 4.4%. Year-over-year data indicates that nonresidential starts are up 4.6%, while residential construction has seen a minor decline of 0.7%.
Regional Performance
Regionally, July saw an uptick in construction starts in the Northeast, contrasting with declines in the Midwest, West, South Central, and South Atlantic regions. The shift in regional performance indicates localized economic conditions influencing construction activities.
Key Projects and Future Outlook
In terms of major projects, the UU West Valley Eccles Health Campus in Utah, valued at $855 million, and the Mercy Hospital Campus in Missouri at $650 million, represent significant investments in nonresidential construction. Similarly, the multifamily sector had high-value projects, including the Rangel Houses Comprehensive Repair/Renovation in New York, amounting to $552 million.
While July marked significant declines in key construction metrics, analysts are monitoring the evolving landscape as the sector attempts to rebound in the latter half of 2025. Understanding these dynamics will be critical for stakeholders in the construction industry looking to navigate future challenges and opportunities.
FAQ
What was the percentage decline in total construction starts in July 2025?
Total construction starts decreased by 10.2% in July 2025.
How did nonbuilding construction perform in July 2025?
Nonbuilding construction starts increased by 20.4% in July 2025.
Were there any significant new projects announced in July 2025?
Yes, notable new projects included the Empire Wind Offshore Wind Energy Project and the A’s Ballpark in Las Vegas.
Key Features Summary Chart
| Category | July 2025 Performance | Year-to-Date Performance |
|---|---|---|
| Total Construction Starts | -10.2% | +1.6% |
| Nonresidential Building Starts | -30.1% | +4.3% |
| Residential Starts | -3.1% | -4.4% |
| Nonbuilding Starts | +20.4% | +5.3% |
Deeper Dive: News & Info About This Topic
HERE Resources
San Antonio’s Economy Faces New Challenges Amid Growth Slowdown
Texas Economic Growth Takes a Breather
Major Construction Project Begins on Market Street
Houston Mariachi Festival Faces Decline in Sales
The Impact of Immigration Policy Changes on Texas Restaurants
Arlington Homebuilders Face Market Challenges
Trump Defends Economic Policies Amid GDP Decline
Additional Resources
- Construction Starts Remained Flat in February
- Wikipedia: Construction
- Construction on Historic Redevelopment of Mary Ellen McCormack Housing Complex
- Google Search: Mary Ellen McCormack Housing Complex
- AHSC Starts Construction on Boston Affordable Project
- Google Scholar: Boston Affordable Construction
- Construction Starts on Crescent Towing and Boston Towing Newbuilds
- Encyclopedia Britannica: Towing
- Construction Begins on Turning Empty Office Space into Residential Units
- Google News: Office Space to Residential Construction
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.
