Conditions Improve in April for Nonresidential Regional Starts, East-West Divide Remains

KEY POINTS

• Improvement Nationwide: Conditions have improved strongly across the country compared to recent months.

• Strong West-East Divide: Nonresidential activity YTD through April shows a clear divide, with the East outperforming the West.

• Civil Construction: All but two census regions, the West Coast and New England, reported positive YTD gains.

ConstructConnect Chief Economist Michael Guckes reported in the May Construction Economy Snapshot that regional nonresidential activity in the year-to-date (YTD) period through April “continues to emphasize a strong west-east divide.”

He added, “In contrast with recent months, conditions have improved strongly across the country.”

Western Region

Guckes reported that conditions along the West Coast and among Mountainous states have improved dramatically.

Although spending in these divisions remains in contractionary territory, the contractions are far smaller than the 40% to 50% declines reported just months ago.

Large percentage gains in economically smaller states, including Utah, Wyoming, and Montana, have helped to lift the region.

While in California, the region’s heavy-weight, YTD activity is now down only 2.4%.

East Coast

Conditions along the East Coast continue to improve, with the entire eastern seaboard now reporting double-digit growth.

However, Nonresidential Building (NRB) activity continues to underperform in the Western, Mountain, and Southern Central divisions, with many of these areas currently reporting modest contractions.

Guckes said that “the latest readings are a vast improvement over conditions earlier in the year, when these regions were reporting contractions between 40% and 60%.“

Total Nonresidential Construction Starts through April 2025 by Census Divisions, from The Construction Economy Snapshot, May 2025. Image: ConstructConnect

West-East Performance Gradient 

While conditions have improved nationwide, the economist added, “there remains a significant gradient in performance as one moves from the troubled West to the far more vigorous East.”

Civil Construction Starts

At the end of April, all but two census regions reported positive YTD gains in 
Civil construction.

• Civil construction is deeply underperforming only along the West Coast region, with spending down 42%.

• New England, the other contracting region through April, performs relatively better, with a modest 0.8% contraction.

• In general, Civil construction has come roaring back in the Southeast, Midwest, and Northern Plains states.

• Even the Mountain region, which began the year very slowly, has climbed back into positive territory with YTD Civil starts up by 7%.

Through April 2025, the year-to-date ranking of the top 20 states by dollar volume of Total Nonresidential Construction Starts. Image: ConstructConnect

Read the Construction Economy Snapshot for more details, including trend graphs, analysis, and commentary from Chief Economist Michael Guckes.

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