Construction Starts Remained Flat in February

Development in some sectors offset weak spot in others.

BOSTON, MA — March 24, 2025 — Whole development begins had been up 0.5% in February to a seasonally adjusted annual price of $1.1 trillion, in line with Dodge Building Community. Nonresidential constructing begins grew 2%, residential begins decreased 1%, whereas nonbuilding begins had been unchanged. On a year-to-date foundation via February, complete development begins had been down 2% from final yr. Nonresidential begins had been down 14%, residential begins had been down 3% and nonbuilding begins had been up by 16% over the identical interval. 

For the 12 months ending February 2025, complete development begins had been up 3% from the 12 months ending February 2024. Residential begins had been up 3%, nonresidential begins had been flat, and nonbuilding begins rose 7% over the identical interval.  

“Whereas elevated uncertainty over the trajectory of financial and financial insurance policies could also be informing a number of the flat month-to-month tendencies – the biggest development sectors nonetheless noticed progress in exercise all through February,” acknowledged Sarah Martin, affiliate director of forecasting at Dodge Building Community. “Regular progress in planning exercise all through 2024 ought to assist stronger development begins in future months – however house owners and builders must consider larger danger round elevated materials prices, provide chain volatility and additional labor constraints.” 

Nonbuilding 

Nonbuilding development begins had been flat in February at a seasonally adjusted annual price of $334 billion. Freeway and bridge begins and environmental public works each elevated 8% however utility/gasoline begins had been down 21% and miscellaneous nonbuilding begins receded 10% over the month. On a year-to-date foundation via February, nonbuilding begins had been up 16% in February – with utility/gasoline begins up 68%, miscellaneous nonbuilding down 5%, freeway and bridge begins up 20%, and environmental public work begins up 1% over the identical interval.  

For the 12 months ending February 2025, complete nonbuilding begins had been up 7%. Environmental public works led the best way, enhancing 18% in comparison with the 12 months ending February 2024. Freeway and bridge begins had been up 7%, miscellaneous nonbuilding begins had been up 16% and utility/gasoline begins had been down 7% over the identical interval.  

The biggest nonbuilding tasks to interrupt floor in February had been the $1.4 billion highway work on the Westshore Interchange in Tampa, Florida, the $1.1 billion Kensico-Eastview Connection Tunnel and Shafts in Valhalla, New York and the $1.0 billion Aratina Photo voltaic farm in Boron, California.  

Nonresidential 

Nonresidential constructing begins improved 2% in February to a seasonally adjusted annual price of $402 billion. Industrial begins had been 22% larger in February, alongside robust workplace, lodge, and parking storage begins. Institutional begins, however, had been down 2% in February following weaker healthcare exercise after a multi-billion-dollar hospital began in January. Manufacturing begins fell 48% over the month. On a year-to-date foundation via February, nonresidential begins are down 14% in comparison with February 2024. Industrial begins are down 8% and institutional begins are up 11% over the identical interval.  

For the 12 months ending February 2025, complete nonresidential begins had been flat in comparison with the 12 months ending February 2024. Industrial begins had been up 7%, institutional begins improved 15%, and manufacturing begins had been down 51% over the identical interval.  

The biggest nonresidential constructing tasks to interrupt floor in February had been the $1.8 billion terminal at John Glenn Columbus Airport in Columbus, Ohio, the $1.5 billion Lyndon B. Johnson Hospital substitute in Houston, Texas and the $1.45 billion renovations to the Jacksonville Jaguars EverBank Stadium in Jacksonville, Florida.  

Residential 

Residential constructing begins fell 1% in February to a seasonally adjusted annual price of $401 billion. Single household begins elevated by 1%, whereas multifamily begins fell again 6%. On a year-to-date foundation via February, residential begins are down 3% when in comparison with February 2024 – with single household begins up 2% and multifamily begins down 11%.  

For the 12 months ending February 2025, complete residential begins had been up 3% – whereas single household begins had been up 11% and multifamily begins had been down 11% in comparison with the 12 months ending February 2024.  

The biggest multifamily constructions to interrupt floor in February had been the $478 million condominiums at The Residences at 1428 Brickell in Miami, Florida, the $335 million Highbridge Residence Constructing in Highbridge, New York and the $265 million Tower 2 at The Customary Residences Brickell in Miami, Florida.  

Regionally, complete development begins in February rose within the Northeast, Midwest, South Atlantic and West, however fell within the South Central.