Construction Starts Pull Back -20.5% in November

Total construction starts were down -20.5% in November to a seasonally adjusted annual rate of $1.22 trillion, according to Dodge Construction Network. Nonresidential building starts fell by -13.4%, residential starts increased +13.3%, and nonbuilding starts dropped -43.7% over the month.

On a year-to-date basis through November, total construction starts were up +5.1% from last year. Nonresidential starts were up +4.7%, residential starts were down 4.9% and nonbuilding starts were +17.5% higher over the same period. For the 12 months ending November 2025, total construction starts were up +5.7% from the 12 months ending November 2024. Residential starts were down -3.6%, nonresidential starts grew +4.8%, and nonbuilding starts were up +18% over the same period.  

“A lack of megaproject activity contributed to a weak November for construction starts,” stated Eric Gaus, chief economist at Dodge Construction Network, in the press release. “There were only two structures over a billion dollars. Looking through the noise of the last two months, the trajectory of the last half of 2025 has been much better than the first half.”  

Nonresidential 

Nonresidential building starts decreased -13.4% in November to a seasonally adjusted annual rate of $485 billion. Commercial starts were down -25.8%, alongside declines in offices and data centers (-40.5% month-to-month (m/m) and hotels (-33.2% m/m). Meanwhile, parking garages (+30.5% m/m); retail stores (8.3% m/m); and warehouses (+6.4% m/m) posted growth between October and November. Institutional starts improved  +11.4%, driven by gains in public (+78.8% m/m) and education buildings (+32.1% m/m),  but offset by declines in amusement (-51.1.8% m/m) and dormitories (-45.9% m/m). Manufacturing activity remains volatile, falling -50.7% in November. On a year-to-date basis through November, nonresidential starts are up +4.7% compared to the first eleven months of 2024. Commercial and industrial starts are up +11.6% and institutional starts are down -2% over the same period. 

For the 12 months ending November 2025, total nonresidential starts were up +4.8% compared to the 12 months ending November 2024. Commercial starts were up 19.9%, institutional starts declined -1.5%, and manufacturing starts were down 13.7% over the same period.  

The largest nonresidential building projects to break ground in November were the $1.8-billion LAX Terminal 5 renovation & reconstruction in Los Angeles, CA., the $800-million Amazon – Southern Site – Data Center in Olive Township, IN, and the $797-million New UCSF Benioff Children’s Hospital Campus in Oakland, CA.  

Residential 

Residential building starts rose by +13.3% in November to a seasonally adjusted annual rate of $368 billion. Single family starts increased +3.1%, while multi-family starts jumped +35.6%. On a year-to-date basis through November, residential starts are down -4.9% – with single family starts down -12.8% and multi-family starts up +12.4%.  

For the 12 months ending November 2025, total residential starts fell -3.6%. Single-family starts fell 11.2% compared to the 12 months ending November 2024, and multi-family starts increased +12.4% over the same period.  

The largest multi-family structures to break ground in November included the $228-million Marine Drive Apartments/Parking – Phase 1 in Buffalo, NY; and the $224-million Namdar Mixed-Use Residential-Swimming Pool-Parking Phase 2 in Miami, FL.  

Nonbuilding  

Nonbuilding construction starts declined -43.7% in November to a seasonally adjusted annual rate of $362 billion. Miscellaneous nonbuilding (-70.4% m/m) drove the declines, along with utilities (-61.4 m/m) and Highway and bridges (-4.9%). Environmental public works starts rose by +6.8% over the month. On a year-to-date basis through November, nonbuilding starts were up +17.5%, alongside gains in miscellaneous nonbuilding (+42.6% m/m), utilities (+49.5%), highways and bridges (+1.7%) while environmental public works declined 1.4%.  

For the 12 months ending November 2025, total nonbuilding starts were up +18%. Environmental public works improved by +2% compared to the 12 months ending November 2024. Highway and bridge starts were up +2.1%, miscellaneous nonbuilding starts were up +40.6% and utility/gas starts increased +47.8% over the same period.  

The largest nonbuilding projects to break ground in November included the $1.7-billion Entergy Meta Substations – 500kv Line (Sarepta to Mt. Olive) in Rayville, LA; the $922-million Easley Renewable Energy Solar Array 400MW/650MW BESS in Dester Center, CA; and the $900-million The New Castle Bluff Energy Center Natural Gas Power Plant in St Louis, MO.