News Summary Total construction starts saw a 1.7% increase, reaching an annual rate of $1.23 trillion. The growth was mainly fueled by nonbuilding projects, while residential construction showed a mixed performance. The nonresidential sector experienced a decline, particularly in commercial construction. Notable projects included significant LNG facilities and medical centers. Regional variations also emerged, with the South Central region leading in activity. Despite overall growth, residential starts faced declines year-to-date, reflecting ongoing market fluctuations. Washington, D.C. — Total construction starts increased by 1.7% in August 2025, reaching a seasonally adjusted annual rate of $1.23 trillion. This growth was largely propelled by significant activity in the nonbuilding sector, alongside a modest rise in residential construction. In detail, residential construction starts rose by 2.4% in August, totaling $364 billion. This growth was attributed to a 15.5% surge in multifamily housing projects, while single-family residential starts faced a decline of 5.4%. However, when viewed year-to-date, residential starts have dropped 5.0%, with single-family housing down 11.7% and multifamily projects up 9.9%. Contrastingly, nonresidential building starts have not fared as well, witnessing a decline of 5.4% in August, which brings the monthly total to a seasonally adjusted rate of $431 billion. Particularly noteworthy is the sharp 12.0% fall in commercial construction, with warehouse projects down 25.3% and retail stores decreasing by 11.3% compared to the previous month. On a positive note, institutional building starts are on the rise, increasing by 3.7%, driven largely by improvements in sectors like education and healthcare. In contrast, the nonbuilding category experienced substantial growth, with an impressive increase of 9.3%, making it a key contributor to the overall rise in construction starts. Year-to-date, nonbuilding construction starts have risen by 8.1%, and significant projects highlighted for August include a $5.1 billion LNG facility in Louisiana and a $2.9 billion LNG facility in Texas. Overall Trends and Year-to-Date Performance Overall, year-to-date construction starts have risen by 1.9% compared to the previous year, with total construction for the 12 months ending in August 2025 showing a 4.7% increase. However, residential starts over this period have fallen by 1.2%, while nonresidential starts have increased by 4.8%, driven largely by growth in nonbuilding projects, which were up 12.1%. Sector-Specific Highlights There were some key projects in the nonresidential building sector which made headlines in August. These include: $880 million Geisinger Medical Center Tower in Danville, Pennsylvania. $666 million Fort Meade East Campus Office Building in Fort Meade, Maryland. $540 million UM Shore Medical Center in Easton, Maryland. Meanwhile, in the residential sector, significant multifamily projects initiated during August were: $619 million Kuilei Place Mixed-Use Residential Tower in Honolulu, Hawaii. $413 million 120 Brickell Residences in Miami, Florida. $383 million Coles Street Mixed-Use Development in Jersey City, New Jersey. Regional Performance Regionally, the South Central experienced the most significant rise in construction starts in August, with a remarkable increase of 53%. In contrast, construction activity declined in several other regions, including the Northeast (-25%), Midwest (-10%), South Atlantic (-2%), and West (-12%). As the construction industry continues to face fluctuations in various sectors, these figures exemplify the ongoing changes in the market and the varying performance across different project types. Deeper Dive: News & Info About This Topic HERE Resources Heesen Yachts Unveils Project Grace Anxiety Grows Among Los Angeles Immigrants Amid Enforcement Tactics Fear Grows Among Immigrants in Los Angeles After Supreme Court Ruling Failed Referendum to Repeal LA’s Minimum Wage Increase China’s Stock Market Faces Cooling Measures Amid Rally Concerns Challenges Facing the Construction Industry Overturned Shuttle Buggy Causes Major Traffic Delays on I-25 Challenges Linger in the Construction Industry Amid Rising Demands Parents Voice Frustrations Over Bus Service for Special Needs Students Road Rage Incident Leads to Shooting in Adams County Additional Resources Bisnow: New CEO of Boston Construction Firm Wikipedia: Construction Boston Agent Magazine: Apartment Construction in Boston Google Search: Construction Industry Trends Boston Globe: Construction Woman Cindy Stumpo Encyclopedia Britannica: Architecture NBC Boston: Trump Immigration Policy & Construction Industry Google News: Construction News
Author: STAFF HERE LOS ANGELES WRITER
LOS ANGELES STAFF WRITER The LOS ANGELES STAFF WRITER represents the experienced team at HERELosAngeles.com, your go-to source for actionable local news and information in Los Angeles, Los Angeles County, and beyond, specializing in "news you can use" with coverage of product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise from years of dedicated reporting and strong community input, including local press releases and business updates, while delivering top reporting on high-value events like the Academy Awards, LA Auto Show, and Los Angeles Marathon, extending coverage to key organizations such as the Los Angeles Area Chamber of Commerce and the Los Angeles Tourism & Convention Board, plus leading businesses in entertainment and technology like Warner Bros. and SpaceX, and as part of the broader HERE network including HEREAnaheim.com , HERECostaMesa.com , HEREHuntingtonBeach.com , and HERESantaAna.com , providing comprehensive, credible insights into Southern California's dynamic landscape. HERE Anaheim HERE Beverly Hills HERE Coronado HERE Costa Mesa HERE Hollywood HERE Huntington Beach HERE Long Beach HERE Los Angeles HERE Mission Viejo HERE San Diego HERE Santa Ana
