Total US Construction Starts increased by 0.1% year over year, declined by 15.9% compared to the previous month (MoM), and rose by 3.7% year to date (YTD) through the end of July 2025.
US Nonresidential Construction Starts dropped to $69.8 billion in July, down 13.9% from June’s record-setting $81.1 billion.
Megaproject spending surged 58% YTD, adding $42.5 billion over last year and boosting key sectors like offices, manufacturing, and sports facilities.
ConstructConnect announced today that Total US Construction Starts increased by 0.1% year over year, declined by 15.9% compared to the previous month (MoM), and rose by 3.7% year to date (YTD) through the end of July 2025.
US Nonresidential Construction Starts, the sum of Nonresidential Building and Civil Construction, cooled in July, slipping to $69.8 billion, a 13.9% decline from June’s historic high, according to ConstructConnect Chief Economist Michael Guckes.
Summary chart of Total US Construction Starts through July 2025. Image: ConstructConnect Construction Economy Snapshot
“The July slowdown follows two consecutive months of record-setting activity, with May and June reaching $79.6 billion and $81.1 billion, respectively,” Guckes said.
Michael Guckes, Chief Economist, ConstructConnect
So far in 2025, U.S. megaproject spending has averaged $16.5 billion per month, lifting total year-to-date investment to a level 58% higher than 2024. The increase adds up to $42.5 billion more in starts compared with last year.
“This increase in megaproject spending has provided a tremendous boost to Nonresidential Building construction, which is overall higher by 14.9 percent year-to-date,” Guckes said.
Key beneficiaries of megaproject spending (projects $1B and up) through June include:
Offices (including Data Centers) up 88% YTD
Manufacturing Facilities up 66% YTD
Sports and Convention Centers up 62% YTD
While Civil Construction does not match the pace of Nonresidential Building, Guckes reported that it has gained traction from select large-scale projects.
Spending is up 4.5% YTD in Civil Construction, standouts include:
Airport projects up 35.2% YTD
Dam/Marine up 26.8% YTD
All Other Civil (includes Tunnels) up 20.6% YTD
The residential sector continues to drag on the broader market. Overall residential spending is down 10.8% YTD, with single-family starts contracting by 12% and multifamily by 8%.
Guckes said that “the difference in performance between single-family and multi-family construction has stabilized since the start of the year.”
He pointed to recent YTD data that indicated a 12% contraction in single-family starts, while only an 8% contraction in multi-family starts.
Read the Construction Economy Snapshot for more details on construction labor, trends, and regional analysis.
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