Total construction starts rebounded 13% in May but still lag last year’s level of shovels hitting dirt, according to Dodge Construction Network.
Nonresidential building starts, which include office, hotel and healthcare work, jumped 18% in May, while nonbuilding activity, such as highways, bridges and utility projects, grew 20%. Residential starts ticked up 2% during the month, according to the data.
The rebound offers some relief for contractors after a slow April, though economic uncertainty and ongoing policy questions may limit how long the momentum lasts, said Sarah Martin, associate director of forecasting at Dodge Construction Network, in the release.
“Construction starts rebounded across most sectors in May, bouncing back from a sluggish April,” said Martin. “However, year-to-date figures remain below last year’s pace. Ongoing uncertainty around trade policy and the economic outlook is likely to keep construction activity in check for the months ahead.”
Here are the nine largest U.S. projects to break ground in May, according to Dodge:
- The $1.5 billion Sierra solar farm and storage project in Fallon, Nevada.
- The $1.2 billion Delta Blues advanced power station in Greenville, Mississippi.
- The $1.2 billion BART train control modernization in Oakland, California.
- The $900 million SpaceX Starship GigaBay facility in Brevard County, Florida.
- The $780 million University of Kentucky CTC Markey cancer treatment and ambulatory surgery center in Lexington, Kentucky.
- The $720 million Pfizer HQ residential conversion in New York City.
- The $705 million DSHS Western State forensic hospital in Lakewood, Washington.
- The $403 million Domino Sugar residential redevelopment in Williamsburg, New York.
- The $290 million Monmouth Square residential development in Eatontown, New Jersey.
Starts growth
Nonbuilding construction starts surged in May to a seasonally adjusted annual rate of $336 billion, according to Dodge.
Utility work more than doubled with a 102% spike, while environmental public works jumped 9%. Highway and bridge starts, on the other hand, slipped 5% during the month, according to the report.
Despite May’s bounce, nonbuilding activity remains 2% lower on a year-to-date basis. Utility work has declined 22% so far this year, while environmental public works dropped 5%. Highway and bridge construction, on the other hand, is up 6% year to date, according to Dodge.
Nonresidential starts climbed to a seasonally adjusted annual rate of $459 million in May, led by a 28% jump in commercial construction projects. Retail, office and warehouse projects all posted gains, while institutional starts rose 19% amid stronger healthcare activity. Manufacturing activity, in contrast, dropped 13% over the month.
Through May, nonresidential starts ticked down 6% compared to the same period last year. Commercial starts remained up 6%, while institutional activity dipped 2%, according to the report.
Residential starts improved to a seasonally adjusted annual rate of $368 billion. That growth came entirely from the multifamily sector, which jumped 15%, while single-family starts declined 5%. So far this year, residential groundbreakings declined 5% compared to 2024, with single-family starts down 9% and multifamily up 5%, according to Dodge.
