U.S. construction starts declined sharply in November as a slowdown in megaproject groundbreakings cooled overall momentum, according to new data from Dodge Construction Network.
.jpg)
Total construction starts fell 20.5% during the month to a seasonally adjusted annual rate of $1.22 trillion. The decline follows a strong October, when several large manufacturing and data center projects broke ground and boosted overall activity.
“A lack of megaproject activity contributed to a weak November for construction starts,” said Eric Gaus, chief economist at Dodge Construction Network, in the release. “There were only 2 structures over a billion dollars.”
Despite the month-to-month drop, construction activity remains stronger than it was a year earlier. Gaus noted that the “trajectory of the last half of 2025 has been much better than the first half,” pointing to continued resilience across several sectors.
Nonresidential construction starts declined 13.4% in November. Commercial construction saw the steepest pullback, falling 25.8%, driven by a 40.5% drop in office and data center projects and a 33.2% decline in hotel construction. Manufacturing construction also fluctuated sharply, tumbling 50.7% for the month.
Institutional construction provided a bright spot, rising 11.4% in November, led by gains in education and healthcare facilities. Parking structures, retail buildings, and warehouse projects also posted steady increases.
Among the largest projects to break ground were the $1.8 billion LAX Terminal 5 renovation in Los Angeles, a $1.7 billion Entergy Meta substation project in Louisiana, and several major energy, healthcare, and data center developments across the country.
Nonbuilding construction, including highways, bridges, and utility projects, recorded the steepest decline, dropping 43.7% in November. However, year-to-date figures remain strong, with nonbuilding starts up 17.5% through November.
Residential construction posted a rare gain, increasing 13.3% for the month, though longer-term trends still trail 2024 levels.
Originally reported by Sebastian Obando, Reporter in Construction Dive.
