May 2026 Total Nonresidential starts reached $75.6 billion, up $1.0 billion, or 1.3%, from April’s revised figure of $74.6 billion.
Office construction — which includes Data Centers — surged $4.3 billion to $8.9 billion, helping offset declines in Warehouses, Manufacturing, Sports and Convention Centers, and Hospitals.
Residential starts fell to $17.8 billion, down 6.8% from April and 31.0% below May 2025, leaving year-to-date residential activity 20.1% behind last year’s pace.
ConstructConnect announced today that May 2026 Total Nonresidential Construction Starts — the sum of Nonresidential Building and Civil Construction — were $75.6 billion, up $1.0 billion from April’s revised reading of $74.6 billion.
Month-on-Month (MoM) Total Commercial spending was higher by $300 million, or 1.9%. Similarly, Total Institutional spending was higher by $500 million for a monthly total of $20.7 billion. These small monthly gains added to much larger year-to-date (YTD) gains for both segments.
Institutional and Commercial spending through May is now up 16% and 74% respectively. Strong growth in these sectors along with Civil construction has more than offset contractions in Residential spending, enabling total construction spending growth of 6.4% through May.
Nonresidential Building (NRB) ended May at $42.0 billion, down 1.4% from April. The modest monthly move masked a sharp divergence amongst market subcategories. Office construction — which includes Data Centers — surged $4.3 billion to $8.9 billion, Prisons jumped $3.0 billion to $3.4 billion, and Military added $1.4 billion.
However, gains were more than offset by contractions led by Warehouses, which shed $2.8 billion, Manufacturing, down $2.5 billion, Sports and Convention Centers, down $1.3 billion, and Hospitals, down $1.1 billion. Through May, NRB starts are 19.1% ahead of the same five-month period in 2025.
Michael Guckes, Chief Economist, ConstructConnect
Civil construction rose 5.0% to $33.6 billion. Dams, Canals, and Marine work more than doubled to $3.0 billion, Airports rebounded to $2.0 billion, and Roads held steady at $12.1 billion. All Other Civil gave back $1.5 billion and Power Infrastructure ended at $1.1 billion.
Year-to-date, Civil starts are 15.3% above the same five-month period in 2025.
Residential starts fell to $17.8 billion, down 6.8% from April and 31.0% below May 2025. Year-to-date, residential activity is 20.1% behind last year’s pace.
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