A new regional analysis from ConstructConnect reveals that U.S. nonresidential construction starts have followed an uneven path through the end of October 2025. While some areas are seeing rapid expansion, others are slowing or contracting, painting a sharply divided national landscape for developers, contractors, and owners.
.jpg)
According to Chief Economist Michael Guckes, while national totals may suggest moderate growth, the underlying regional differences tell a more complicated story. “Construction growth varies dramatically across the United States,” the report highlights, with the Mountain division experiencing explosive gains, even as West Coast and Central Plains markets slow.
The contrast between regions is striking. The Mountain division is outperforming every other U.S. sector with a 77% surge in nonresidential starts, benefiting from population growth, industrial investment, and emerging federal incentives targeted at data centers, semiconductor facilities, and clean-energy manufacturing.
On the opposite end of the spectrum, the West Coast continues to cool, showing only 1% year-to-date growth in nonresidential starts. Factors influencing this slowdown include higher material costs, stricter environmental regulations, and slower project approvals in major markets such as California and Washington.
A deep split exists in the central U.S. markets:
The drop in the eastern sector reflects lower commercial demand and delayed public projects as municipalities reallocate budgets toward basic infrastructure rather than new nonresidential facilities.
Despite cooling in some parts of the country, the southern regions provide a more optimistic picture:
Rising private investment in manufacturing and advanced logistics facilities is helping these southern regions rebound faster than expected.
Along the East Coast, most divisions remain stable, with neither major gains nor contractions. However, New England continues to outperform, leading the market with 28% growth in nonresidential starts. Its momentum is driven by education development, biotech research facilities, and infrastructure modernization.
Nonresidential building activity follows similar patterns to overall starts. While the West Coast posted a 6% contraction, the Mountain division leads the nation again with an extraordinary 144% expansion—a sign of booming project pipelines and sustained developer demand.
In the central regions, three out of four divisions posted contractions, except for the West South Central division, home to Texas, where building activity increased by 34%.
On the East Coast, every division posted gains, with New England’s 23% expansion outpacing the Middle Atlantic’s 5% and the South Atlantic’s 6% growth.
Civil construction spending has become a key factor in holding up regional construction markets. The report stresses that, “civil construction spending is providing a crucial boost to the industry in most regions,” supporting overall stability.
Six out of nine U.S. divisions have expanded civil spending this year. The most significant increases came in:
These gains reflect heavy investment in transportation, water projects, bridges, utility infrastructure, and public-sector upgrades, often backed by federal funding streams.
However, three regions are experiencing declines:
In these areas, double-digit drops in civil spending indicate tightening local budgets and shifting state policy priorities.
Although many regions display volatility, the data suggests that targeted economic and policy activity is shaping the nation’s construction environment. Infrastructure funding continues to provide support, private investment is driving growth in specific regions, and large-scale industrial markets such as data centers and electric vehicle manufacturing remain highly active.
ConstructConnect underscores its market insights as tools to help professionals adapt to these changes. “For more than 100 years, our keen insights and market intelligence have empowered commercial firms, building product manufacturers, trade contractors, and architects to make data-driven decisions,” the company explains, noting that its newest AI-assisted software offerings are designed to help builders “start every project on a solid foundation.”
Originally reported by Michael Guckes, Chief Economist in Construct Connect News.
