KEY POINTS
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Nonresidential construction starts show mixed performance, with sharp regional US contrasts tied to megaproject activity.
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A pair of East and Central divisions face double-digit declines, while Texas and the Mountain region surge ahead.
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Civil construction spending is helping offset nonresidential building declines in many states.
Nonresidential construction starts are painting a divided map across the United States this year, with growth and contraction occurring side by side depending on geography and project mix.
In the September Construction Economy Snapshot, I reported that the August 2025 volume
of Total Nonresidential Construction Starts — the sum of Nonresidential Building and Civil Construction — was $57.7 billion in the US, a decrease of $23.5 billion against July’s revised reading.
A regional perspective paints a clearer picture of the US Nonresidential construction economy.
Map of Total Nonresidential Construction Starts through August 2025 by Census Divisions, from The Construction Economy Snapshot, September 2025. Image: ConstructConnect
Along the West Coast, year-to-date spending growth is barely holding at 1.2%, well below inflation, while the Mountain Division continues to expand more than 80% thanks to a handful of megaprojects.
Meanwhile, central regions of the country are reporting steep contractions, with both the East South Central and East North Central divisions posting double-digit declines.
Only the West South Central, led by Texas, remains truly vibrant. Elsewhere, the picture is extremely uneven, with as many divisions advancing as contracting.
Nonresidential Building Volatility
Nonresidential building activity has been especially volatile in 2025. The Mountain Division is up 153% year-to-date, followed by the West South Central at 53% and New England at 39%.
By contrast, the East South Central has plunged 39%, the East North Central is down 30%, the West North Central slipped 10%, and the Pacific declined 9%.
The sharp contrast in regional results, even between neighboring divisions, reflects the outsized impact of a small number of high-value projects.
Civil Work Offers Some Relief
Civil spending has provided a cushion for many areas, offsetting weakness in nonresidential building. Nearly every division has seen civil activity rise, with the South Atlantic the only exception.
The boost has been particularly important across the four Central divisions, stretching from North Dakota to Ohio and from Texas to Alabama, where infrastructure and public works projects are helping to stabilize otherwise contracting markets.
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