Construction Starts Economy

Regional US Construction Activity Reveals Two-Speed Nonresidential Market

KEY POINTS

  • Year-to-date through May 2026, Nonresidential Building (NRB) starts are positive in five of nine Census divisions.

  • Arizona’s NRB total for the first five months of 2025 was $30.8 billion; in the same period of 2026, it is $3.3 billion.

  • Civil construction tells a different story: eight of nine divisions are positive through May, and the range of outcomes is far narrower than NRB.

East North Central Leads a Two-Speed Nonresidential Market

Year-to-date through May 2026, Nonresidential Building (NRB) construction starts are positive in five of nine Census divisions.

East North Central leads, up 187.8%, with Illinois and Indiana approaching 350% and 400%, respectively.

South Atlantic is up 44.6%, Middle Atlantic up 40.7%, Pacific up 23.9%, and West South Central up 23.8%. New England is down 17.8%, East South Central down 16.3%, and West North Central down 2.3%.

Mountain registers down 70.5% — a figure driven entirely by Arizona’s prior-year comparison, which included the $25 billion Taiwan Semiconductor Manufacturing plant in May 2025.

regional total nonres june 2026 c 2026 constructconnect construction economy snapshotArizona’s NRB total for the first five months of 2025 was $30.8 billion; in the same period of 2026, it is $3.3 billion.

Civil Construction Tells a Different Story

Civil construction tells a different story: eight of nine divisions are positive through May, and the range of outcomes is far narrower than NRB.

The fastest growing divisions, led by the Pacific at 49.3%, also include New England, up 36.3%, and Middle Atlantic, up 30.1%, and finally the East North Central at 20.3%. South Atlantic, East South Central, West South Central, and Mountain are each modestly positive in the 1% to8% range — notably, Mountain civil is up 1.3%, as Arizona’s semiconductor project had no material effect on civil starts.

West North Central is the only division running below last year, down 8.1%. Taken together, six of nine divisions are running ahead of last year in total Nonresidential starts, and the national total is up 17.6% through May.

Excluding the impact of the Taiwan Semiconductor plant in Arizona, Mountain’s reported total Nonresidential decline would reduce from a 56% contraction to a 19% decline.

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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.