Nonresidential Construction Continues to Outpace Residential

Washington, DC, July 2, 2026—Nonresidential construction spending remained a bright spot in May, with activity continuing to outperform the residential sector, according to a new analysis from Truist.

Citing the latest U.S. Census Bureau data, Truist said preliminary nonresidential construction spending increased 1.6% year over year in May. All furnished construction categories—including lodging, office, commercial, healthcare and education—posted annual gains, with office construction leading the way at 17% above year-ago levels.

Highway and street construction also remained strong, rising 6.1% from May 2025 following a 4.6% increase in April. Truist said the continued growth comes as lawmakers consider reauthorization of federal transportation funding following the expiration of the Infrastructure Investment and Jobs Act.

Overall U.S. construction spending edged up 0.1% in May on a seasonally adjusted annualized basis. Truist noted that nonresidential markets have generally remained flat to positive throughout 2026, significantly outperforming the residential construction sector.