The Daily Dig
Total U.S. construction starts fell 24.8% in August to a seasonally adjusted annual rate of $1.34 trillion, according to Dodge Construction Network. The drop follows a July surge fueled by a handful of massive projects, and it touched every major category. Nonresidential, residential, and nonbuilding starts all declined for the month.
The year to date numbers tell a steadier story. Total starts are still up 15.2% through August, and over the 12 months ending in August, they're up 14.5% year over year.
Powering Through
Data centers, semiconductors, and energy remain the sectors driving growth. "Data center, semiconductor and energy construction are driving growth, while several other sectors are facing subdued activity alongside deeper labor shortages, and accelerating material prices," said Sarah Martin, Director of Economic Research at Dodge Construction Network. That's the story behind the headline number. Growth is real, but it isn't spread evenly across the industry.
Nonresidential building starts fell 32.0% for the month. Hotel construction more than tripled after a weak July, up 302.2%, and retail improved 26.9%. Offices and data centers dropped 31.3% after July's run. Warehouses slid 13.4%, and manufacturing fell 80.8% off the back of last month's megaproject activity. Healthcare bounced back hard, up 96.1% after its own soft July.
The three largest nonresidential projects to break ground were the $3.5 billion Amazon STACK Blanchard State Line Data Center in Mooringsport, Louisiana, the $3.2 billion Clarksville Hyperscale Data Center in Arkansas, and the $2.9 billion Bronx Detention Facility in Mott Haven, New York.
Power Play
Nonbuilding starts declined 26.7% for the month. Highway and bridge work kept sliding, down 20.8%. The largest nonbuilding project was the $3.5 billion Steel River Energy Center in Wilson, Arkansas, followed by the $1.4 billion Bluegrass Power Generation project in Ohio and a $772 million wind farm in Illinois.
Residential starts slipped 5.2%. Single family held roughly flat, while multifamily dropped 13.5% for the month. The largest multifamily start was the $1.1 billion 655 Madison Ave mixed use tower in New York.
Regional Roundup
Every region except one posted a decline, but not evenly. The Northeast fell 52.6% and the West fell 51.4%. The South Atlantic dropped 24.2%. The Midwest barely moved, down just 1.1%. Only the South Central grew, up 28.8% for the month.
Snapshot:
Report: August 2026 Construction Starts
Source: Dodge Construction Network
Total Starts (SAAR): $1.34 trillion
Monthly Change: -24.8%
Year to Date Change: +15.2%
12 Month Change: +14.5%
Nonresidential Starts: $624 billion (-32.0% m/m, +23.4% YTD, +17.9% 12 month)
Nonbuilding Starts: $355 billion (-26.7% m/m, +22.2% YTD, +27.6% 12 month)
Residential Starts: $364 billion (-5.2% m/m, -1.8% YTD, -2.4% 12 month)
Largest Nonresidential Project: Amazon STACK Blanchard State Line Data Center, $3.5 billion, Mooringsport, Louisiana
Largest Nonbuilding Project: Steel River Energy Center (Phases 1 & 2), $3.5 billion, Wilson, Arkansas
Largest Multifamily Project: 655 Madison Ave, $1.1 billion, New York, New York
Regional Performance: South Central only region with monthly growth at +28.8%. Northeast, West, South Atlantic, and Midwest all declined.
TheJobWalk Thoughts
Data centers, semiconductors, and energy are driving growth, but they're not the whole story. Commercial and industrial construction combined are up 47.7% year to date. Know where you sit relative to both.
Labor shortages and material price pressure tend to feed each other. Tighter labor stretches schedules, and stretched schedules give material costs more room to move. Build extra cushion into your estimates this cycle.
The multifamily dip is worth watching, not panicking over. One soft month hasn't erased its year to date or trailing 12 month gains. Single family has stopped falling, even if it hasn't started climbing yet.
🥾Want to advertise in TheJobWalk? Learn More🥾
