Commercial Construction Starts Up 17.8% in May, Residential Down 2.1%

Boston, MA, June 18, 2026—Total construction starts improved 34.1% in May to a seasonally adjusted annual rate of $1.78 trillion, according to Dodge Construction Network. Nonresidential (commercial) building starts grew by 17.8%, nonbuilding starts increased 91.9%, and residential starts fell 2.1% over the month. 

On a year-to-date basis, total construction starts were up 12.7% through May. Nonresidential starts were up 12.3%, nonbuilding starts improved by 32.9%, and residential starts were down 4.9% over the same period. For the 12 months ending May 2026, total construction starts were up 12.5% from the 12 months ending May 2025. Residential starts were down 4.6%, nonresidential starts were up 11.7% and nonbuilding was up 33.2%.

“Megaproject starts within healthcare, manufacturing, utilities and data centers drove sizeable gains across the month,” stated Sarah Martin, director of economic research at Dodge Construction Network. “Outside of this activity, however, pockets of weakness across institutional construction, warehouses and residential construction remain.”

Nonresidential building starts improved 17.8% in May to a seasonally adjusted annual rate of $647 billion. Commercial starts were up 0.8% over the month, driven by the 20.2% m/m increase in offices and data centers, while all sectors experienced declines; parking garages (-53.6% m/m), hotels (-36.8% m/m), warehouses (-17.0% m/m), and stores (-6.2% m/m). Institutional starts gained 17.4% over the month, supported by the 138.8% m/m surge in healthcare construction and offset by the -15.1% m/m decline in education starts. Manufacturing construction rebounded 116.1% m/m in May, alongside the start of the $5 billion Rivian Electric Vehicle Plant. On a year-to-date basis through May, nonresidential starts are up 12.3%. Commercial and industrial construction gained 32.9%, while institutional starts are down 8.8% over the same period.

For the 12 months ending May 2026, total nonresidential starts were up 11.7% compared to the 12 months ending May 2025. Commercial starts were up 26.6%, institutional starts decreased 4.1%, and manufacturing starts were up 32.4% over the same period.

The largest nonresidential building projects to break ground in May were the $5 billion Rivian Electric Vehicle Plant in Social Circle, Georgia, the $3.0 billion Nebius Data Center (Buildings 1 & 2) in Birmingham, Alabama and the $2.8 billion World Trade Center Commercial Tower in New York, New York.

Residential building starts fell by 2.1% in May to a seasonally adjusted annual rate of $373 billion. Single family starts fell 1.0% m/m, and multifamily starts fell 3.7% m/m. On a year-to-date basis, residential starts are down 4.9%, with single family starts down 9.4% and multifamily starts up 3.6%.

For the 12 months ending May 2026, total residential starts fell 4.6%. Single family starts fell 13.5% compared to the 12 months ending May 2025, and multifamily starts increased 12.7% over the same period.

The largest multifamily structures to break ground in May were the $867 million 111 Wall Street Residential Conversion in New York, New York, the $633 million River’s Edge Continuing Care Retirement Community (Phase 1) in Bronx, New York and the $271 million Cherry Lane Residential Tower (Phase 1) in Denver, Colorado.

Regionally, total construction starts in May rose in every region except the Midwest; the Northeast (+33.5% m/m), the South Atlantic (+36.5% m/m), the South Central (+87.6% m/m), and the West (+24.4% m/m). The Midwest declined by 8.4% between April and May.