The worth of development begins, not seasonally adjusted, soared 13 % year-over-year (y/y) in Could however was down 0.4 % year-to-date (YTD) within the first 5 months of 2025 in comparison with 2024, in response to a ConstructConnect report. Nonresidential constructing begins climbed 36 % y/y and 6.6 % YTD, with industrial down 1.8 % YTD, institutional down 3.6 %, however industrial (manufacturing) up 54 %.
In response to ConstructConnect, the largest occasion boosting this month’s outcomes was the groundbreaking of Taiwan Semiconductor Manufacturing Firm’s $25 billion chip plant in Phoenix, which accounts for nearly half of all nonresidential constructing begins. Civil begins rose 9.1 % y/y and seven.2 % YTD. Residential begins slumped 16.5 % y/y and 15 % YTD, with single-family down 12 % YTD and multifamily down 20 %.
The agency reported on June 3 that its Undertaking Stress Index composite elevated 11 % from April to Could. This rise was fueled by a 30 % enhance in abandonment exercise, whereas bid-date delays decreased 1.9 % and on-hold exercise noticed negligible change. ConstructConnect reviews because the finish of 2024, abandonment exercise has jumped 66.5 %, bid-date delays elevated 4.3 %, and on-hold exercise declined 18.5 %. Whereas bid-date delays and on-hold exercise are nonetheless inside historic ranges, abandonment exercise has climbed to its highest stage since early February 2024, with the extent of personal sector abandonments up 92 % y/y. Present abandonment exercise is at its highest stage in recorded historical past, which started in mid-2019. Whereas public abandonment exercise can be elevated at the moment, it stays inside its historic vary.
The Undertaking Stress Index composite represents an equal-weight measure of the seasonally adjusted stage of preconstruction initiatives which have skilled a delayed bid date, been positioned on maintain, or deserted within the final 30 days. It solely screens nonresidential and multifamily initiatives of their preconstruction phases, thus excluding any single-family development.
