Total construction starts tumbled 9% in April to a seasonally adjusted annual rate of $1.03 trillion, according to Dodge Construction Network.
Nonresidential building starts, such as office, hotel and healthcare projects, dropped 3%, while residential activity fell 4%. Nonbuilding starts, such as highways, bridges and utility work, posted the steepest decline of the month at 22%, according to the report.
That backslide marks an alarming shift for an industry already grappling with project delays and fading momentum, said Eric Gaus, chief economist at Dodge Construction Network.
“Broad-based monthly declines in construction starts represent a troubling signal for the sector,” said Gaus in a news release. “While not definitive, the slowdown in April aligns with delays in the planning pipeline and other economic data that capture the volatility and uncertainty of all the April tariff announcements.”
Gaus added lingering questions over trade policy and the broader economy will continue to weigh on construction activity in the months ahead.
Here are the nine largest U.S. projects to break ground in April, according to Dodge:
- The $1.8 billion Manhattan Tunnel Project in New York City.
- The $1 billion Kaiser Permanente Medical Center in Sacramento, California.
- The $940 million Bally’s River West Hotel and Casino in Chicago.
- Two buildings for the GM and Samsung SDI battery cell factory, valued at $875 million and $855 million, in New Carlisle, Indiana.
- The $775 million West Alabama Highway project in Thomasville, Alabama.
- The $365 million Carpenter wind farm in Carpenter Township, Indiana.
- The $331 million residential and retail development in Jersey City, New Jersey.
- The $256 million Vista Point apartments at Fairview Life Care Community in Groton, Connecticut.
- The $226 million Rambler Riverfront District apartments in West Lafayette, Indiana.
Starts growth
Commercial construction cooled in April after a strong March, with groundbreakings plummeting 21% for the month, according to the report.
Activity slowed across key categories including retail, office and warehouse starts. Institutional projects, however, posted a modest 2% uptick, supported by growth in healthcare and education projects. Manufacturing construction also rebounded, jumping 78% in April.
On a year to date basis, nonresidential starts are down 10%, though commercial starts ticked up 3% during that period.
However, despite the monthly drop, year-to-date nonbuilding starts remain up 8%, fueled by previous gains in utility work and steady progress in road and bridge construction.
Residential construction continued to soften in April, with total starts down 4%. Single-family starts declined 5%, while multifamily slipped 3%. Year-to-date, residential starts have dropped 5%, with single-family activity down 6% and multifamily down 4% compared to the first four months of 2024, according to the report.
