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Regional Nonresidential Construction Starts: 2025 Analysis

Written by Michael Guckes, Chief Economist | Jan 28, 2026 5:12:26 PM

KEY POINTS  

  • The Mountains division was the fastest-growing Nonresidential Construction Starts region for the calendar year, up 68%.

  • All three East Coast divisions finished the year with double-digit Nonresidential Building gains, led by the South Atlantic at 15% and closely followed by a 14% gain in New England.

  • For a fourth consecutive year, Civil construction spending broadly supported America’s construction industry, with six of eight divisions reporting gains. 

Nonresidential Starts Regional Performance Overview

For the 2025 calendar year, West Coast nonresidential starts spending ended slightly higher with a 3% gain. The neighboring Mountain division was the fastest-growing region for the calendar year, up 68%, and was followed by the West South Central division, which followed with 48% growth.

The remaining three Central divisions fell distantly behind, with the East South Central division growing by 13% while the East North Central region, which encompasses the traditional “rustbelt” states, fell by 1%.

Along the eastern seaboard, the New England division grew by 20%, well ahead of the remaining coastal divisions, which grew by 4% to 6%.

Map of Total Nonresidential Construction Starts through December 2025 by Census Divisions, from The Construction Economy Snapshot, January 2026. Image: ConstructConnect

Geographical Trends in Nonresidential Building

The geographical picture for nonresidential building activity closely mirrors total nonresidential patterns. The West Coast struggled with a 7% decline, sharply contrasting with the Mountain division’s 152% gain, which was largely supported by the year’s surging levels of megaprojects.

Among the four Central Plains divisions, the two southern divisions expanded while the northern two contracted.

All three East Coast divisions finished the year with double-digit gains, led by the South Atlantic at 15% and closely followed by a 14% gain in New England.

Civil Spending Drives Growth

For a fourth consecutive year, civil construction spending broadly supported America’s construction industry, with six of eight divisions reporting gains. Leading this group was the West South Central division at 58%, followed by the East North Central at 36% and then New England at nearly 29% growth.

While the South Atlantic and Mountain divisions both posted double-digit declines, the Middle Atlantic fell by less than 3% for the year.

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