Construction Starts Rose 9% on Commercial Strength

Boston, MA, May 21, 2026-Total construction starts rose 9.0% in April to a seasonally adjusted annual rate of $1.33 trillion, according to Dodge Construction Network. Nonresidential (commercial) building starts grew by 18.6%, nonbuilding starts increased 7.0%, and residential starts fell 0.7% over the month. 

On a year-to-date basis, total construction starts were up 5.4% through April. Nonresidential starts were up 9.1%, nonbuilding starts improved by 12.3%, and residential starts were down 4.5% over the same period. For the 12 months ending April 2026, total construction starts were up 8.1% from the 12 months ending April 2025. Residential starts were down 4.4%, nonresidential starts were up 10.0% and nonbuilding was up 19.5%.  

Nonresidential building starts improved 18.6% in April to a seasonally adjusted annual rate of $550 billion. Commercial starts were up 41.4%, mostly driven by the 46.1% month-over-month (m/m) increase in offices and data centers, however all sectors experienced growth; parking garages (120.4% m/m), warehouses (+25.0% m/m), hotels (+12.8% m/m), and stores (+5.0% m/m). Institutional starts gained 12.3% over the month, with all sub-categories experiencing growth; other institutional categories (+15.1% m/m), education (+13.2% m/m), and healthcare (+4.6%). Manufacturing construction gave up 29.3% m/m after an astounding 251.4% growth in March. On a year-to-date basis through April, nonresidential starts are up 9.1%. Commercial and industrial construction gained 30.4%, while institutional starts are down 12.1% over the same period.  

For the 12 months ending April 2026, total nonresidential starts were up 10.0% compared to the 12 months ending April 2025. Commercial starts were up 25.1%, institutional starts decreased 3.8%, and manufacturing starts were up 20.9% over the same period. 

The largest nonresidential building projects to break ground in April were the $5.0 billion Provident/PowerHouse Prairie Ridge Data Center Phase 1 in Midlothian, TX, the $1.9 billion SK Hynix HBM Advanced Packaging & R&D Hub project in West Lafayette, IN, and the $1.3 million Stargate Data Center Campus project in Saline Township, MI. 

Residential building starts fell by 0.7% in April to a seasonally adjusted annual rate of $383 billion. Single family starts increased 4.2% m/m, and multifamily starts fell 7.2% m/m. On a year-to-date basis, residential starts are down 4.5%, with single family starts down 10.9% and multifamily starts up 7.9%. 

For the 12 months ending April 2026, total residential starts fell 4.4%. Single family starts fell 15.0% compared to the 12 months ending April 2025, and multifamily starts increased 17.4% over the same period.  

The largest multifamily structures to break ground in April were the $850 million Gowanus Wharf 175 3rd Street Mixed Use Development in Gowanus, NY, the $354 million Deerfield Episcopal Retirement Community III (Expansion) project Asheville, North Carolina and $303 million Archer Towers Mixed Use Development-Garage (Phase 2) project in Jamaica, New York.  

Regionally, total construction starts in April rose in the Midwest (+66.9% m/m), the Northeast (+19.9% m/m), and the South Atlantic (+9.3% m/m). Meanwhile, the South Central (-14.5% m/m), and the West (-8.6% m/m) saw declines.