Total construction starts fell sharply in November, declining 20.5% to reach a seasonally adjusted annual rate of $1.22 trillion, according to Dodge Construction Network. The dramatic drop follows October's surge driven by manufacturing and data center projects.
Key Findings:
Limited Megaproject Activity: Only two projects exceeding $1 billion broke ground in November—a stark contrast to previous months. Eric Gaus, Chief Economist at Dodge Construction Network, noted that the lack of megaproject activity was the primary driver of the weak November performance.
Nonresidential Sector Performance:
Overall nonresidential starts declined 13.4%
Commercial activity dropped 25.8%
Office and data center projects fell 40.5%
Hotel construction decreased 33.2%
Manufacturing activity plummeted 50.7%
Bright Spots: Despite the overall decline, some segments showed growth:
Institutional projects (education and healthcare) rose 11.4%
Parking garages experienced steady increases
Retail and warehouse sectors maintained positive momentum
Historical Context: While November's numbers disappointed, overall groundbreaking activity remains higher than November 2024. Gaus emphasized that "the trajectory of the last half of 2025 has been much better than the first half," suggesting underlying strength despite monthly volatility.
Top November Projects:
$1.8B - LAX Terminal 5 renovation (Los Angeles)
$1.7B - Entergy Meta substations (Louisiana)
$922M - Easley renewable energy solar array (California)
$900M - New Castle Bluff Energy Center natural gas plant (St. Louis)
$800M - Amazon data center (Indiana)
$797M - UCSF Benioff Children's Hospital (Oakland, CA)
Market Outlook: The construction industry continues to experience significant month-to-month swings in 2025, particularly in manufacturing, which has shown extreme volatility throughout the year.
