Dodge Construction Network: Construction Starts Fall Back in August

Total construction starts declined 24.8% in August to a seasonally adjusted annual rate of $1.34 trillion, according to Dodge Construction Network. Nonresidential building starts fell 32% over the month, residential starts decreased 5.2% and nonbuilding declined by 26.7%. On a year-to-date basis, total construction starts were up 15.2% through August.

Nonresidential starts were up 23.4%, nonbuilding starts improved by 22.2%, and residential starts were down 1.8% over the same period. For the 12 months ending August 2026, total construction starts were up 14.5% from the 12 months ending August 2025. Residential starts were down 2.4%, nonresidential starts were up 17.9% and nonbuilding starts were up 27.6%.

“After a pop in activity last month, construction starts largely normalized throughout August,” stated Sarah Martin, director of economic research at Dodge Construction Network. “Abstracting from the month-to-month volatility, the story remains consistent. Data center, semiconductor and energy construction are driving growth, while several other sectors are facing subdued activity alongside deeper labor shortages, and accelerating material prices.”

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