Topline growth obscures general weakness
BOSTON,听MA听鈥斕鼺ebruary听20, 2026听鈥�听Total construction starts听expanded听0.7% in听January听to a seasonally adjusted听annual rate of听$1.24听trillion,听according to听. Nonresidential building starts fell by 15.4%, residential starts decreased 6.4%, and nonbuilding starts grew 24.3% over the month. On a year-over-year basis, total construction starts were up 5.0% from January 2025. Nonresidential starts were down 10.3%, residential starts were down 17.0% and nonbuilding starts were up by 46.1% over the same period. For the 12 months ending January 2026, total construction starts were up 6.1% from the 12 months ending January 2025. Residential starts were down 6.0%, nonresidential starts were up 5.5% and nonbuilding was up 21.0%. 听
鈥淣onbuilding听construction听remained听the primary engine of growth听in听the first month of 2026,鈥澨齭tated听Eric Gaus Chief Economist听at 糖心Vlog. 鈥淭hree mega projects in the nonbuilding sector accounted for nearly听$20 billion听or almost half of the growth in January,听which would mean total construction would have been negative without those three projects.鈥澨�听
Residential听
Residential building starts听fell听by听6.4% in听January听to a seasonally adjusted annual rate of听$345听billion. Single family starts听increased听1.5%听m/m, while multifamily starts听fell by听17.8%听m/m.听On a year-over-year basis, residential starts are down听17.0% compared to January 2025,听with single family starts听down听21.5% and multifamily starts down听9.2%.听
For the 12 months ending听January听2026, total residential starts fell听6.0%. Single family starts fell听15.2% compared to the 12 months ending听January听2025, and multifamily starts increased听13.6% over the same period.听听
The largest multifamily structures to break ground in听January听were the听$335听million听38 Gramercy Park East Condominiums听in听New York, New York, the $265听million听Lakeview Residence听in听West Palm Beach,听Florida听and the $200听million听Homestead Gateway Mixed Residential Tower听in听Jersey City,听New Jersy.听听
Nonresidential听
Nonresidential building starts听decreased听15.4%听in听January听to听a seasonally adjusted annual rate of听$378听billion. Commercial starts were听down听27.3%,听alongside听a drop听in offices and data centers (-52.2% m/m),听parking garages (-6.7% m/m)听and听hotels (-17.4% m/m). Meanwhile,听warehouses (+10.2% m/m)听and听retail starts (+6.5% m/m)听posted an increase听between听December听and听January. Institutional starts听declined听15.2%, driven by weaker education (-21.9% m/m) and miscellaneous institutional (-26.1% m/m) starts. This decline was partially offset by听10.5% m/m growth in healthcare facility starts. Manufacturing, meanwhile, pulled听up by听97.5% in听January.听On a year-over-year basis, nonresidential starts are down听10.3% compared to January 2025. Commercial starts are听up听14.2%听and听institutional starts are down听29.6% over the same period.听听听
For the 12 months ending听January听2026, total nonresidential starts were up听5.5% compared to the 12 months ending听January听2025. Commercial starts were up听19.4%, institutional starts听decreased听4.4%, and manufacturing starts were听up听3.5% over the same period.听听
The largest nonresidential building projects to break ground in听January听were the听$1.2听billion听New York Presbyterian Cancer Center听in听New York, New York, the听$1 billion听Amkor Semiconductor Advanced Packaging听(Phase 1)听in听Peoria,听Arizona听and the $714 million听QTS CLT1 Data Center听(Phase听1) in听York,听South Carolina.听听
Nonbuilding
Nonbuilding construction听starts听grew听24.3% in听January听to a seasonally adjusted annual rate of听$522听billion.听The category was听held up听solely听by the electric power/utilities which soared by 184.8%.听However听highways and bridges (-42.3% m/m),听miscellaneous nonbuilding听(-31.5% m/m)听and environmental public works (-5.9% m/m)听faced declines.听听
For the 12 months ending听January听2026, total nonbuilding starts were up听21.0%.听Environmental public works听fell听by听5.3% compared to the 12 months ending听January听2025.听Highway and bridge starts were up听3.4%, miscellaneous nonbuilding starts were up听36.2%听and听utility/gas starts increased听67.9% over the same period.听听
The largest nonbuilding projects to break ground in听January听included the听$12听billion听Port Arthur LNG – Liquefaction Phase 2 (Trains 3 & 4)听in听Port Arthur, Texas, the听$6 billion听Homer City Energy Campus 4.4听GW听in听Homer City, Pennsylvania听and the听$1.5 billion听Tehuacana Creek 1 Solar and Battery Storage听project in听Navarro,听Texas.听听
Regionally,听total construction starts in听January听rose听in听the听Northeast (+32.0%听m/m),听the South Central (+9.6% m/m), and听the South Atlantic (+2.2% m/m).听Meanwhile, starts slowed down in听the West (-21.1% m/m)听and the Midwest (-12.6% m/m).听
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