Construction Starts Economy

Middle Atlantic, East North Central Rush Ahead of Other Divisions on Surging Megaproject Starts

KEY POINTS

  • Six of nine U.S. Census divisions posted YTD gains in Total Nonresidential Construction Starts through August 2026, led by East North Central and Middle Atlantic at 77.5% and 75.9%.

  • Megaprojects drove Midwest and East building growth.  

  • Southern civil construction strengthened while West Coast civil spending weakened.  

Six of Nine Census Divisions Post Year-to-Date Gains

Six of the nine Census divisions posted year-to-date gains in Total Nonresidential Construction Starts — the combined value of Nonresidential Building and Civil Construction — through August 2026 versus the same period in 2025.

Megaprojects Accelerate Growth Across Central and Atlantic Regions

All four central regions along with the Middle and South Atlantic, representing the contiguous states from North Dakota to Texas and Eastward between New York and Florida reported accelerating spending thanks to substantial megaproject starts.

The East North Central and Middle Atlantic regions reported the greatest increase in YTD growth at 77.5% and 75.9% respectively. Civil and Commercial work in Ohio and Kentucky sustained the division’s latest growth while in New York Micron Technology broke ground on a new $25 billion chip fabrication plant in July.

2026-09 -- DIVISION_TTLNonResid_YTD% VIZ

Through August 2026, the East North Central and Middle Atlantic U.S. Census regions reported the greatest increase in YTD growth at 77.5% and 75.9% respectively. Image: ConstructConnect Construction Economy Snapshot

New York and the Midwest Drive Nonresidential Building Growth

Nonresidential Building (NRB) — the subset of Nonresidential Construction covering offices, factories and hospitals — illustrates an even more disperse picture of starts activity. New York’s NRB starts totaled $44.2 billion in the calendar year through August, lifting the state to second place behind only Texas which totaled $60.0 billion over the same period.

New York’s gains have helped propel the Middle Atlantic’s NRB growth to 105.1% YTD, placing it second only to the East North Central division capturing activity from Ohio northwestward to Wisconsin.

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In the East North Central division the states of Illinois, Indiana, and Michigan, have each recorded more than $20 billion in YTD megaproject starts. In each state the composition of megaprojects has been almost identical: a nearly exclusive mix of data centers and manufacturing facilities.

Southern Civil Strength Contrasts with West Coast Weakness

Civil Construction — defined as infrastructure such as roads, bridges and utility systems — has been particularly strong across the lower half of the nation.

Causes for this success have been most apparent in places like Louisiana which has seen its Civil starts this year climb to $16.7 billion, a 587% gain thanks to projects such as the $13 billion Commonwealth LNG export facility which broke ground in August.

In contrast, the West Coast has struggled with weak Civil spending this year. The states of California, Oregon and Washington have all seen civil construction fall by 20% or more so far in 2026.

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Read the Construction Economy Snapshot for more details on construction starts, trends, and regional analysis. 

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Michael Guckes, Chief Economist
Michael Guckes is regularly featured as an economics thought leader in national media, including USA Today, The Wall Street Journal, and Marketplace from APM. He started in construction economics as a leading economist for the Ohio Department of Transportation. He then transitioned to manufacturing economics, where he served five years as the chief economist for Gardner Business Media. He covered all forms of manufacturing, from traditional metalworking to advanced composites fabrication. In 2022, Michael joined ConstructConnect's economics team, shifting his focus to the commercial construction market. He received his bachelor’s degree in economics and political science from Kenyon College and his MBA from the Ohio State University.