KEY POINTS
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Coastal regions, especially the Pacific and New England divisions, have led YTD 2025 nonresidential construction growth, driven by concentrated megaproject investments and a strategic rebound from early-year contractions.
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California and Arizona together accounted for over $31B in megaproject starts, powering strong gains in the Pacific and Mountain divisions. Meanwhile, the East Coast regions saw broad growth with limited reliance on large-scale developments.
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Civil construction spending has expanded across most U.S. divisions, highlighting a widespread and balanced infrastructure investment trend beyond the high-profile megaproject hotspots.
Monthly nonresidential construction starts surged to a record $79.6B through the end of June 2025, the second consecutive all-time high, driven largely by megaprojects averaging over $15B per month.
Distinct geographic patterns across the US can be seen in this nonresidential construction activity, with coastal regions outperforming the interior Midwest and Plains states through the year-to-date (YTD) period ending June 2025.
The coastal rebound is largely driven by concentrated investment in megaprojects, especially in the Pacific and New England divisions, underscoring the strategic weight of large-scale construction initiatives.
Pacific Division: A Remarkable Turnaround Fueled by Megaprojects
The Pacific division, initially plagued by a steep 41% contraction in Q1, has emerged as a leading growth region with an impressive YTD gain of 11.7%. This recovery is largely attributed to a surge in megaproject activity.
California alone contributed a staggering $18 billion in megaproject starts through June, accounting for more than 30% of the Pacific region’s total nonresidential starts. These large-scale projects have been pivotal in reversing the division’s early-year downturn.
Map of Total Nonresidential Construction Starts through June 2025 by Census Divisions, from The Construction Economy Snapshot, July 2025. Image: ConstructConnect
East Coast Divisions: Broad Growth with Minimal Megaproject Influence
All East Coast divisions have reported positive YTD growth through the end of June 2025, led by:- New England: Up 34.9%
- Middle Atlantic: Up 7.6%
- South Atlantic: Up 3.0%
Despite this growth, megaproject spending played a relatively minor role in these increases.
Combined, the New England and Middle Atlantic divisions recorded $25.9B in total nonresidential construction spending, but only $2.6B—or 10%—was tied to megaprojects. This contrasts sharply with trends in the West and Mountain regions, where such projects are more dominant.
Mountain and Pacific Divisions: NRB Activity Driven by Concentrated Megaprojects
Nonresidential Building (NRB) construction continues to accelerate in the Mountain and Pacific divisions. Arizona and California alone are responsible for $31.2B in megaprojects from just five starts, showcasing how a handful of large-scale developments can reshape regional metrics.
East Coast NRB Surge: Spotlight on North Carolina and Virginia
NRB activity is also gaining momentum along the East Coast, with New England seeing a 34.9% increase and the South Atlantic reporting an 18.6% rise.
Out of $12.3B in megaproject investments across New England and South Atlantic, nearly half occurred in North Carolina, followed by Virginia with $2.8B. These two states represent the focal points for large-scale development in the region.
Civil Construction: Broad-Based Growth Across the Country
Civil construction spending has been the most evenly spread among all construction categories YTD. Of the nine census divisions, seven are reporting expansion, while two—Mountain and South Atlantic—are experiencing contractions.
Leading Divisions in Civil construction growth through the end of June 2025:- Middle Atlantic: Up 36.6%
- New England: Up 26.4%
- East North Central: Up 25.9%
This suggests a strong and diverse infrastructure investment pipeline across much of the country, even in areas not experiencing notable NRB megaproject activity.
Coastal Regions Reap Gains from Strategic Spending
The first half of 2025 has revealed a clear advantage for coastal regions, especially the Pacific and New England divisions, in nonresidential construction activity. While megaprojects have dramatically shaped outcomes in states like California and Arizona, other areas like New England have achieved strong gains with relatively modest megaproject input.
Civil construction remains robust nationwide, providing a geographically balanced boost to the construction sector.
Read the Construction Economy Snapshot for more details on construction labor, trends, and nonresidential construction starts.
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