The Daily Dig

Total U.S. construction starts fell 1.5% in September to a seasonally adjusted annual rate of $1.33 trillion. The figures come from Dodge Construction Network’s report dated October 21, 2026.

Nonresidential building led the decline with a 6.3% drop, while residential slipped just 0.3%. Nonbuilding work moved the other way, climbing 5.5% for the month.

The bigger picture holds up well. Through September, total starts are still up 14.3% for the year.

Regionally, the West jumped 33% over the month, while the South Central fell 20%.

“Construction starts edged lower in September, but gains in institutional and nonbuilding construction helped cushion the decline,” said Sarah Martin, Director of Economic Research at Dodge Construction Network.

Checkout Time

Commercial took the hardest hit, falling 18.4% for the month. Hotels posted the steepest drop at 46.3%, coming off a very strong August.

Offices and data centers fell 21.4% as a combined category, and manufacturing pulled back 21.0%. Even so, the three biggest nonresidential starts of the month were all data centers, led by the $4.6 billion South Valley Data Center in Silver Springs, Nevada.

School’s In

Institutional work helped soften the blow, rising 16.3% in September. Education did most of the lifting with a 38.4% jump.

Pavement Pays

Nonbuilding starts rose to a $377 billion annual rate, with highway and bridge starts up 20.8% for the month.

Utilities dipped 4.1% in September, but the year tells a different story. Electric power and utility starts are up 70.1% through September, and the month’s two largest nonbuilding starts were both solar projects.

Stacking Up

Multifamily starts climbed 11.3% for the month, while single family fell 7.4%. The month’s largest multifamily start was the $820 million Four Seasons condominium tower in Austin, Texas.

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Snapshot:

  • Report: Dodge Construction Network, September 2026 construction starts

  • Report Date: October 21, 2026

  • Total Starts: $1.33 trillion SAAR, down 1.5% m/m

  • Total Starts YTD: Up 14.3%

  • Total Starts, 12 Months Ending Sept. 2026: Up 13.6%

  • Nonresidential: $583 billion SAAR, down 6.3% m/m, up 23.7% YTD

  • Commercial: Down 18.4% m/m

  • Hotels: Down 46.3% m/m

  • Offices and Data Centers: Down 21.4% m/m

  • Manufacturing: Down 21.0% m/m, up 3.4% over 12 months

  • Parking Garages: Up 33.9% m/m

  • Commercial Warehouses: Up 0.8% m/m

  • Commercial and Industrial Construction YTD: Up 46.3%

  • Institutional: Up 16.3% m/m, down 1.8% YTD

  • Education: Up 38.4% m/m

  • Healthcare: Down 3.0% m/m

  • Largest Nonresidential Starts: South Valley Data Center, Silver Springs, NV ($4.6 billion); Beacon Point Data Center, Robstown, TX ($4.3 billion); Vantage V41 Data Center Campus, Fredericksburg, VA ($2.0 billion)

  • Nonbuilding: $377 billion SAAR, up 5.5% m/m, up 18.4% YTD

  • Highway and Bridge: Up 20.8% m/m, up 0.9% YTD

  • Utilities: Down 4.1% m/m

  • Electric Power/Utilities YTD: Up 70.1%

  • Utility/Gas, 12 Months: Up 90.8%

  • Environmental Public Works: Up 0.8% m/m, down 4.1% YTD

  • Largest Nonbuilding Starts: Big Rooter Power Solar, Bremond, TX ($1.7 billion); Entergy Cypress Solar, Redfield, AR ($1.6 billion)

  • Residential: $366 billion SAAR, down 0.3% m/m, down 1.7% YTD

  • Single Family: Down 7.4% m/m, down 4.5% YTD

  • Multifamily: Up 11.3% m/m, up 3.0% YTD

  • Largest Multifamily Starts: Four Seasons condominium tower, Austin, TX ($820 million); One Montague Place Mixed Residential & Commercial Tower, Brooklyn Heights, NY ($544 million); Ombelle Mixed Use Residential Tower, Fort Lauderdale, FL ($329 million)

  • Regional, m/m: West up 33%; South Atlantic up 7%; Northeast down 1%; Midwest down 13%; South Central down 20%

  • Quoted: Sarah Martin, Director of Economic Research, Dodge Construction Network

TheJobWalk Thoughts

Keep September in context, since total starts are still up 14.3% this year. The hotel plunge follows a very strong August, so it looks more like a tough comparison than a trend.

Power keeps pulling work, with electric power and utility starts up 70.1% this year. Add three data centers as the month’s biggest building starts, and that’s a lot of switchgear and transformers, gear that rarely ships overnight. Electrical subs and suppliers should lock in lead times early.

Housing is splitting too, with multifamily up 3.0% this year and single family down 4.5%. Single family trades should be bidding multifamily now.

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