Construction Starts Improved 13% in May

Development rebounds over the month, however trails final yr’s ranges.

BOSTON, MA — June 20, 2025 — Complete development begins had been up 13% in Might to a seasonally adjusted annual fee of $1.16 trillion, based on Dodge Development Community. Nonresidential constructing begins improved by 18%, residential begins rose 2%, and nonbuilding begins grew 20% over the month. On a year-to-date foundation by way of Might, whole development begins had been down 4% from final yr. Nonresidential begins had been down 6%, residential begins had been down 5%, and nonbuilding begins had been 2% decrease over the identical interval.

For the 12 months ending Might 2025, whole development begins had been up 1% from the 12 months ending Might 2024. Residential begins had been flat, nonresidential begins had been up 2%, and nonbuilding begins fell 1% over the identical interval.  

“Development begins rebounded throughout most sectors in Might, bouncing again from a sluggish April,” acknowledged Sarah Martin, affiliate director of forecasting at Dodge Development Community. “Nonetheless, year-to-date figures stay beneath final yr’s tempo. Ongoing uncertainty round commerce coverage and the financial outlook is more likely to maintain development exercise in verify within the months forward.”   

Nonbuilding

Nonbuilding development begins improved 20% in Might to a seasonally adjusted annual fee of $336 billion. Most nonbuilding sectors expanded over the month, together with environmental public works (+9%), utility begins (+102%) and miscellaneous nonbuilding (+37%). Freeway and bridge begins, however, decreased 5% in Might. On a year-to-date foundation by way of Might, nonbuilding begins had been down 2%, pushed by weaker development in environmental public works (-5%) and utilities (-22%) year-to-date. Conversely, freeway and bridge begins and miscellaneous nonbuilding are up 6% and 25% respectively.  

For the 12 months ending Might 2025, whole nonbuilding begins had been down 1%. Environmental public works improved 12% in comparison with the 12 months ending Might 2024. Freeway and bridge begins had been up 8%, miscellaneous nonbuilding begins had been up 24% and utility/gasoline begins had been down 32% over the identical interval.  

The most important nonbuilding initiatives to interrupt floor in Might had been the $1.5 billion Sierra Photo voltaic Farm and Storage (400 MW) venture in Fallon, Nevada, the $1.2 billion development of Delta Blues Superior Energy Station (754 MW) in Greenville, Mississippi and the $1.2 billion BART Practice Management Modernization in Oakland, California.  

Nonresidential 

Nonresidential constructing begins rebounded 18% in Might to a seasonally adjusted annual fee of $459 billion. Business begins had been 28% greater in Might, alongside stronger retail, workplace and warehouse begins. Institutional begins grew 19% final month following stronger healthcare begins. Manufacturing begins fell again 13% in Might. On a year-to-date foundation by way of Might, nonresidential begins are down 6% in comparison with Might 2024. Business begins are up 6% and institutional begins are down 2% over the identical interval.  

For the 12 months ending Might 2025, whole nonresidential begins had been up 2% in comparison with the 12 months ending Might 2024. Business begins had been up 14%, institutional begins improved 8%, and manufacturing begins had been down 41% over the identical interval.  

The most important nonresidential constructing initiatives to interrupt floor in Might had been the $900 million SpaceX Starship Starfactory GigaBay Facility in Brevard County, Florida, the $780 million UK CTC Markey Most cancers Remedy and Ambulatory Surgical procedure middle in Lexington, Kentucky and the $705 million DSHS Western State Forensic Hospital in Lakewood, Washington.

Residential 

Residential constructing begins improved 2% in Might to a seasonally adjusted annual fee of $368 billion. Single-family begins decreased by 5%, whereas multifamily begins elevated by 15%. On a year-to-date foundation by way of Might, residential begins are down 5% – with single household begins down 9% and multifamily begins up 5%.  

For the 12 months ending Might 2025, whole residential begins had been flat. Single-family and multifamily begins had been each flat in comparison with the 12 months ending Might 2024.  

The most important multifamily constructions to interrupt floor in Might had been the $720 million Pfizer HQ Residential Conversion in New York, New York, the $403 million Domino Sugar Residential Redevelopment (Website B) in Williamsburg, New York and the $290 Monmouth Sq. Residential Growth in Eatontown, New Jersey.  

Regionally, whole development begins in Might rose within the Northeast, South Atlantic, South Central, and West – whereas begins declined within the Midwest.