Broad-based Gains Signal Unexpected Strength
BOSTON, MA 鈥� May 20, 2026 鈥�听Total construction starts听rose听9.0% in听April听to a seasonally adjusted听annual rate of听$1.33听trillion,听according to听. Nonresidential 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%.听听
鈥淎pril鈥檚 construction starts were robust with only three categories posting month over month losses,鈥澨齭tated听Eric Gaus, Chief Economist of 糖心Vlog.听鈥淟arge听data centers and energy generation supported the growth, but 9 of the 15 categories saw听double听or triple听digit听growth.鈥�听
Nonresidential听
Nonresidential building starts听improved 18.6% in听April听to a seasonally adjusted annual rate of听$550听billion. Commercial starts were听up听41.4%, mostly driven by the听46.1% m/m听increase in听offices and data centers,听however all sectors experienced growth; parking garages (120.4% m/m), warehouses (+25.0% m/m),听hotels (+12.8% m/m),听and听stores (+5.0% m/m). Institutional starts听gained听12.3% over the month,听with all sub-categories听experiencing growth; other institutional categories (+15.1% m/m),听education (+13.2% m/m),听and healthcare (+4.6%).听Manufacturing construction听gave up听29.3% m/m听after an astounding 251.4% growth in March. On a year-to-date basis through April, nonresidential starts are听up 9.1%. Commercial and industrial construction gained听30.4%, while institutional starts are down 12.1% over the same period.听听
For the 12 months ending听April听2026, total nonresidential starts were up听10.0% compared to the 12 months ending听April听2025. Commercial starts were up听25.1%, institutional starts decreased听3.8%, and manufacturing starts were up听20.9% over the same period.听听
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.听
Nonbuilding
Nonbuilding听construction听starts听increased听7.0% in听April听to a seasonally adjusted annual rate of听$394听billion.听Strong听double digit听gains in miscellaneous nonbuilding听(+18.1%听m/m),听highways and bridges (+17.0% m/m) and environmental public works (+16.3% m/m) reversed听losses听from the previous month.听Electric power/utilities segment fell 9.7%听but听levels听remain听bolstered by large natural gas facilities and large renewable projects.听On a year-to-date basis through听April, nonbuilding construction was up听12.3% alongside the听79.3% year-to-date growth in electric power/utilities. The remaining public works sectors, however, are seeing deeper year-to-date declines.听听
For the 12 months ending听April听2026, total nonbuilding starts were up听19.5%.听Environmental public works听fell听by听2.2% compared to the 12 months ending听April听2025.听Highway and bridge听starts听were听down听0.9%, miscellaneous nonbuilding starts were up听35.6%听and听utility/gas starts increased听62.0% over the same period.听听
The largest nonbuilding projects to break ground in听April听included听the听$3.8听billion听Bison Generation Station Natural Gas Power听Plant听听in听ND,听the听$3.3听billion听Cayuga Station Natural Gas Energy Replacement听in听Cayuga,听IN, and the听$1.0 billion听Tradepoint Atlantic Container Terminal听in听Edgemere,听MD.
Residential听
Residential building starts听fell听by听0.7% in听April听to a seasonally adjusted annual rate of听$383听billion. Single family starts听increased听4.2%听m/m,听and听multifamily starts听fell听7.2%听m/m.听On a year-to-date听basis, residential starts are down听4.5%,听with single family starts听down听10.9% and multifamily starts听up听7.9%.听
For the 12 months ending听April听2026, total residential starts fell听4.4%. Single family starts fell听15.0% compared to the 12 months ending听April听2025, and multifamily starts increased听17.4% over the same period.听听
The largest multifamily structures to break ground in听April听were the $850听million听Gowanus Wharf 175 3rd Street Mixed Use Development听in听Gowanus,听NY, the $354听million听Deerfield Episcopal Retirement Community III (Expansion)听project听Asheville,听NC听and $303听million听Archer Towers Mixed Use Development-Garage (Phase 2)听project in听Jamaica, NY.听听
Regionally, total construction starts in听April听rose听in听the听Midwest (+66.9% m/m),听the Northeast (+19.9% m/m),听and听the听South Atlantic (+9.3% m/m).听Meanwhile,听the South Central (-14.5% m/m), and the West (-8.6% m/m) saw declines.
