The Daily Dig
Total construction starts fell 19.9% in June to a seasonally adjusted annual rate of $1.42 trillion, according to Dodge Construction Network. The drop followed a month of strong megaproject activity in May, and Dodge described June as starts coming back down to earth. Nonresidential building starts declined 9.1% for the month, nonbuilding starts dropped 37.7%, and residential starts slipped 2.2%. Even with the monthly pullback, total starts remain up 11.1% year to date and 10.6% over the trailing 12 months.
Nonresidential building starts fell to a $584 billion annual rate in June, down 9.1% from May. Commercial starts still edged up 1.2%. Parking garages jumped 29.5% and warehouses rose 15.0%, with additional gains in hotels and retail. Offices and data centers pulled back 3.7%. Institutional starts rose 2.5%, led by an 8.0% increase in education and dormitory projects. Healthcare starts sank 29.9%, and manufacturing starts plunged 62.9% as activity normalized after May's surge.
The largest nonresidential projects to break ground included the $3.6 billion Delta Forge 1 Hyperscale Data Center Campus in Louisiana, the $2.1 billion Sentinel Midstream Deepwater Port in Texas, and the $2.0 billion second phase of an AWS data center in Mississippi.
Nonbuilding starts took the steepest hit. They fell to a $473 billion annual rate, down 37.7% from May. Highway and bridge starts dropped 46.6%, and utility starts fell 70.3%, giving back much of the ground gained the prior month. Environmental public works rose 26.3%, and miscellaneous nonbuilding categories surged 168.3%. The largest nonbuilding projects to break ground were the $3.6 billion CTA Red Line Extension in Chicago, the $2.4 billion Cleveland Browns stadium project in Ohio, and the $2.1 billion Amtrak Sawtooth Bridge Replacement in New Jersey.
Residential starts declined 2.2% to a $363 billion annual rate. Single family starts fell 3.4%, and multifamily starts slipped 0.4%. The largest multifamily projects broke ground in New York state, led by the $480 million 1740 Broadway conversion in New York, New York, followed by the $251 million River Commons project in Concourse, New York. Regionally, starts fell everywhere except the Midwest, which posted a 3.0% monthly gain. The South Central and South Atlantic regions each dropped more than 30%.
Snapshot:
Report: Dodge Construction Network Monthly Construction Starts, June 2026
Total Starts (SAAR): $1.42 trillion
Total Starts, Month-over-Month: -19.9%
Total Starts, Year-to-Date: +11.1%
Total Starts, 12-Month Trend: +10.6%
Nonresidential Building Starts (SAAR): $584 billion
Nonresidential Starts, Month-over-Month: -9.1%
Nonbuilding Starts (SAAR): $473 billion
Nonbuilding Starts, Month-over-Month: -37.7%
Residential Starts (SAAR): $363 billion
Residential Starts, Month-over-Month: -2.2%
Largest Nonresidential Project: Delta Forge 1 Hyperscale Data Center Campus, Boyce, LA ($3.6 billion)
Largest Nonbuilding Project: CTA Red Line Extension, Chicago, IL ($3.6 billion)
Largest Multifamily Project: 1740 Broadway residential conversion, New York, NY ($480 million)
Regional Standout: Midwest, only region with monthly growth (+3.0%)
TheJobWalk Thoughts
Manufacturing's 62.9% monthly drop looks severe on its own, but Dodge frames it as a reset after May's surge, not new weakness. The trailing 12-month figure shows manufacturing starts down 22.6%, yet commercial and industrial starts combined are still up 17.9% year to date. That split matters for GCs bidding industrial work. The category isn't collapsing, it's just uneven month to month.
Healthcare starts fell 29.9% in June, and the broader institutional category is down 7.3% year to date and 6.8% over the trailing 12 months. The report doesn't isolate healthcare on those longer timeframes, but the institutional trend gives subs a reason to watch this space beyond one soft month.
Education and dormitory starts rose 8.0% for the month, standing out against the broader institutional slide. It's a category worth watching for firms with education sector experience, though one strong month doesn't confirm a sustained shift on its own.
