Nonresidential Construction Starts, US Regional Analysis June 2025

Nonresidential Activity Rebounds in Key Regions

Nonresidential activity in the year-to-date (YTD) period through May 2025 shows significant improvements since the first quarter. 

Civil Construction Drives Industry Growth

For a second consecutive year, civil construction is driving a disproportionate amount of industry growth. This growth has generally been well distributed across the country.

In much of the middle of the country, civil construction is up more than 15%. In the South Atlantic and Middle Atlantic, civil construction starts are up 25% and 47%, respectively.

Regional Variations in Performance

Only the West, West South Central, and New England divisions continue to report year-to-date (YTD) contractions. All four Central Plains divisions are down from year-ago levels, highlighting ongoing regional disparities in nonresidential construction activity.

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

Pacific Division Spending Improves

Pacific division construction spending, as mentioned, remains down 18% year-to-date (YTD), but is a significant improvement over the 41% contraction recorded at the end of Q1. This positive trend highlights a notable rebound in nonresidential construction activity in the region.

Mountain Region Turnaround

The Mountain region results improved dramatically between the end of Q1 and May, thanks to a surge in megaproject spending. YTD Mountain region Nonresidential Building (NRB) starts, which were down 51% at the end of March, are now 85% above their May 2024 level.

Central Divisions Face Ongoing Challenges

Challenges remain among the four Central divisions, with only the West North Central division reporting positive YTD results. All remaining Central divisions remain down between 11% and 18% compared to a year ago.

The East North Central region, which contains the heavily industrial states of Illinois and Ohio, is down 42%. The East South Central division follows, down 31%.