Manufacturing, Utilities, and Multifamily Lead the Way
BOSTON, MA 鈥� April 17, 2026 鈥�听Total construction starts听rose 12.8% in听March听to a seasonally adjusted听annual rate of听$1.22听trillion,听according to听糖心Vlog Construction听Network. Nonresidential building starts grew by 6.3%, residential starts improved 2.6%, and nonbuilding starts rebounded 37.9% over the month. On a year-to-date basis, total construction starts were down 0.5% through March. Nonresidential starts were down 0.2%, residential starts were down 7.2% and nonbuilding starts improved by 6.4% over the same period. For the 12 months ending March 2026, total construction starts were up 5.4% from the 12 months ending March 2025. Residential starts were down 5.3%, nonresidential starts were up 6.5% and nonbuilding was up 15.8%. 听
鈥淎听few strong categories overcame听slight听weakness in all the others in March,鈥澨齭tated听Eric Gaus, Chief Economist of 糖心Vlog. 鈥淭he commercial segment听shows the most strength with听12 month听growth for all sub-categories except warehousing.鈥�听
Nonbuilding
Nonbuilding听construction听starts听jumped听37.9% in听March听to a seasonally adjusted annual rate of听$369 billion. Three mega-projects continued the flip-flopping streak in the electric power/utilities segment, which popped up 353.6% m/m in March. Miscellaneous nonbuilding increased as well, rising 44.0% over the month. Conversely, highways and bridges (-13.6% m/m) and environmental public works (-4.1% m/m) reversed gains from the previous month. On a year-to-date basis through March, nonbuilding construction was up听6.4% alongside the听68.6% 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March听2026, total nonbuilding starts were up听15.8%.听Environmental public works听fell听by听6.4% compared to the 12 months ending听March听2025.听Highway and bridge听starts听were听down听1.0%, miscellaneous nonbuilding starts were up听34.9%听and听utility/gas starts increased听52.3% over the same period.听听
The largest nonbuilding projects to break ground in听March听included听the听$2.5 billion听Darden Clean Energy Project听in Cantua听Creak, CA,听the $2.0 billion听Phase 1听Natural Gas Plant/Site Infrastructure听in Panhandle, TX, and the听$2.0 billion听CPV Basin Ranch Energy Center听in Barstow, TX.听听
Nonresidential听
Nonresidential building starts improved 6.3% in March to a seasonally adjusted annual rate of $466 billion. Commercial starts were down 9.2%, mostly driven by the 16.0% m/m pull back in offices and data centers. Warehouses (-6.6% m/m) also lost ground in March, while, hotels (+19.3% m/m), stores (+5.6% m/m), and parking garages (0.8% m/m) made gains. Institutional starts contracted 1.5% over the month, despite growth in education (+3.4% m/m) and healthcare (+9.7%). Other institutional categories more than offset that growth, dropping 11.8% m/m. After a lackluster February, manufacturing construction also bounced back, increasing by 251.9% m/m. On a year-to-date basis through March, nonresidential starts are down 0.2%. Commercial and industrial construction gained 18.0%, while institutional starts are down -17.8% over the same period. 听
For the 12 months ending听March听2026, total听nonresidential听starts were up听6.5% compared to the 12 months ending听March听2025. Commercial starts were up听19.2%, institutional starts听decreased听5.7%, and manufacturing starts were听up听20.2% over the same period.听听
The largest nonresidential building projects to break ground in听March听were听the听$3.4 billion听Shintech听Ethylene PEP-2 & Vinyl Chloride Monomer (SPP-4)听in听Plaquemine, LA,听the听$2.4 billion听Savannah River Plutonium Processing Facility听project in Aiken, SC, and听the $953听million听Port Terminal 1 Replacement听project in听Anchorage,听AK.听
Residential听
Residential building starts grew by 2.6% in March to a seasonally adjusted annual rate of $385 billion. Single family starts decreased 5.3% m/m, and multifamily starts expanded by 15.3% m/m. On a year-to-date basis, residential starts are down 7.2%, with single family starts down 14.1% and multifamily starts up 6.1%.听
For the 12 months ending听March听2026, total residential starts fell听5.3%. Single family听starts听fell听15.7% compared to the 12 months ending听March听2025, and multifamily starts increased听16.3% over the same period.听听
The largest multifamily structures to break ground in听March听were the $727 million听Discovery Park (PA 31) Apartments听in Irvine,听CA, the $577 million听Harborside 4 Residential Tower听project Jersey City, NJ and $420 million听61 Broadway Residential Conversion听project in New York, NY.听听
Regionally,听total construction starts in听March听rose听in听and听the South Central (+41.7% m/m),听the West (+22.1% m/m)听,听the South Atlantic (+7.5% m/m) and the Northeast听(+3.1% m/m).听Meanwhile,听the听Midwest (-15.1% m/m) was the only region to see a decline.听听
