Listen to the article
This audio is auto-generated. Please let us know if you have feedback.
An uptick in groundbreakings last month helped keep construction momentum strong, but not necessarily consistent.
Total construction starts increased 3.1% in September to a seasonally adjusted annual rate of $1.26 trillion, according to Dodge Construction Network. The increase builds on August’s 1.7% growth.
But broader acceleration in construction starts keeps stalling, said Eric Gaus, chief economist at Dodge Construction Network.
“A 3% growth rate is just keeping up with inflation,” said Gaus in the release. “We need fourth quarter growth of 25% to match annual growth of 2024.”
Nonresidential building starts, which include commercial and institutional projects, increased 11.9% in September. Parking and service station projects jumped 30.1%, along with a 32.6% increase in office construction. Manufacturing activity swung drastically, up 45.2% in September following the previous month’s 24.4% drop, according to the report.
Overall nonresidential construction posted a 5% increase year-to-date through September. Over the first nine months of the year, commercial groundbreakings grew 10.9%, though institutional starts, which include education and healthcare, fell 0.8%, according to Dodge.
For the 12 months ending September 2025, total nonresidential starts improved 6.8%. Commercial and institutional categories also posted 22.5% and 5% growth during that span. But manufacturing slumped 23.6% in the same time span.
Here are the nine largest U.S. projects to break ground in September, according to Dodge:
- The $3 billion AirTrain Newark Replacement in Newark, New Jersey
- The $2.7 billion Hugh Brinson Pipeline in Midland, Texas.
- The $2.5 billion Hut 8 data center in St. Francisville, Louisiana.
- The $1.7 billion NYS Life Sciences Public Health laboratory in Albany, New York.
- The $1.2 billion Llano data center phase 1 in Claude, Texas.
- The $1.1 billion Walnut Creek WWTP renovation and expansion in Austin, Texas.
- The $584 million Harborside 8 mixed-use residential, commercial and parking project in Jersey City, New Jersey.
- The $575 million 5 Times Square residential conversion in New York City.
- The $480 million Imperial Tower in Jersey City, New Jersey.
Nonbuilding starts, such as highway, bridges and other infrastructure, fell 6.2% in September. That was largely due to a 62.5% drop in utility construction. Other categories in the sector improved in September, including a 7.4% increase in highway and bridge projects.
Over the past 12 months ending September 2025, total nonbuilding starts gained 16.7%, according to the report.
Residential construction increased 3.6% in September. Both multifamily and single-family projects posted growth, 6.4% and 1.7%, respectively. For the 12 months ending September 2025, total residential construction starts fell 1.4%.
