News Summary In August, the construction industry experienced a slight uptick with total starts reaching approximately $1.23 trillion. The increase, driven by nonbuilding and multifamily projects, contrasts with declines in nonresidential segments. Year-to-date performance indicates a 1.9% increase, even as residential construction sees mixed trends. The growth of nonbuilding infrastructure is notable, alongside regional variations in construction activity. While some sectors struggled, overall, the outlook remains cautiously optimistic for the construction industry. Construction Activity Shows Modest Increase in August 2025 Nationwide In the largest cities across the country, total construction starts experienced a slight uptick in August 2025. The seasonally adjusted annual rate (SAAR) reached approximately $1.23 trillion, marking a 1.7% rise compared to the previous month. This figure reflects cautious optimism in the construction industry amid mixed sector performances, with notable growth in nonbuilding and multifamily projects, despite declines in nonresidential building segments. Overall Construction Starts and Year-to-Date Performance From January to August 2025, total construction starts increased by 1.9% compared to the same period last year. Nonresidential starts grew modestly by 3.4%, whereas residential construction experienced a slight decline of 5.0%. The nonbuilding sector, which includes large infrastructure projects, saw a substantial year-to-date growth of 8.1%. Over the 12 months ending August 2025, total construction activity volume overall rose by 4.7%, driven largely by nonbuilding and nonresidential segments, despite a dip in residential activity. Details of Key Sectors Nonbuilding Sector Leads Growth Construction starts in the nonbuilding category jumped by 9.3% in August, bolstered by major infrastructure projects such as the $5.1 billion Woodside Louisiana LNG Facility in Sulphur, Louisiana, and the $2.9 billion Cheniere Corpus Christi LNG Facility in Gregory, Texas. Additionally, the $1.8 billion Kingston Energy Complex with Battery Storage in Kingston, Tennessee, contributed to the sector’s upward trend. For the year, nonbuilding activity increased by 12.1%. Nonresidential Building Declines but Institutional Growth While nonresidential building starts declined by 5.4% in August, the sector’s year-to-date figures show a moderate increase of 3.4%. Commercial construction was particularly affected, with a 12.0% month-over-month decrease. Warehousing projects dropped sharply by 25.3%, and retail store starts declined by 11.3%. In contrast, institutional projects saw a 3.7% rise in August, driven by growth in healthcare (+2.8%), education (+0.5%), and other institutional categories (+9.9%). Major new projects included the $880 million Geisinger Medical Center Tower in Pennsylvania, the $666 million Fort Meade East Campus Office Building in Maryland, and the $540 million UM Shore Medical Center in Easton, Maryland. Manufacturing Remains Volatile Manufacturing construction starts experienced significant fluctuations, falling 24.4% in August after an earlier decline of 84.8%. Despite this month’s drop, the sector’s 12-month change showed a decrease of 27.4%, indicating ongoing volatility in factory and industrial projects. Residential Construction Sees Mixed Trends In residential construction, starts rose to an annualized rate of $364 billion in August, increasing by 2.4%. However, detailed figures reveal a decline in single-family starts by 5.4%, while multifamily starts soared by 15.5%. Year-to-date, residential starts are down 5.0%, with single-family projects down 11.7% but multifamily projects up 9.9%. Over the 12 months ending August 2025, total residential starts declined slightly by 1.2%. Major multifamily developments that began recently include the $619 million Kuilei Place Mixed-Use Tower in Honolulu, Hawaii, the $413 million 120 Brickell Residences in Miami, Florida, and the $383 million Coles Street Mixed-Use Development in Jersey City, New Jersey. Regional Variations in Construction Starts Regionally, the data indicates varied activity levels in August. The South Central region experienced a robust increase of 53%, driven by several large projects. Conversely, declines were observed in the Northeast (-25%), Midwest (-10%), South Atlantic (-2%), and West (-12%) regions, reflecting uneven industry growth across the country. Summary The overall picture in August 2025 points to a cautiously recovering construction industry, with increases driven by infrastructure and multifamily housing projects. While some segments like nonresidential commercial construction faced declines, others such as nonbuilding and institutional projects showed resilience. The data suggests a mixed yet stable outlook for the remaining months of 2025, influenced by regional differences and ongoing shifts in market demands. Deeper Dive: News & Info About This Topic HERE Resources Construction of New Crosswalks on 82nd Avenue to Boost Safety Construction Begins on Liberty Landing Project in New Richmond Burlington Business Owners Struggle Amid Main Street Construction Local Contractors Charged with Theft and Fraud in Evansville D.C. 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