Construction starts tumble 20.5% amid megaproject pullback

A slowdown in megaproject kickoffs caused overall groundbreaking momentum to cool down in November, according to Dodge Construction Network.

Total construction starts fell 20.5% in November to a seasonally adjusted annual rate of $1.22 trillion. The reversal follows a surge of megaproject starts in October, led by manufacturing and data center jobs.

“A lack of megaproject activity contributed to a weak November for construction starts,” said Eric Gaus, chief economist at Dodge Construction Network, in the release. “There were only 2 structures over a billion dollars.”

Despite the monthly drop, overall groundbreaking activity remains higher than November 2024. Gaus added the “trajectory of the last half of 2025 has been much better than the first half.”

Nonresidential starts, which include commercial and institutional projects, declined 13.4% in November, according to Dodge. Commercial activity dropped 25.8%, led by a 40.5% pullback in office and data center projects, followed by a 33.2% decline in hotel construction. Manufacturing activity, which has swung sharply month to month throughout 2025, also tumbled 50.7% in November.

But not all nonresidential segments weakened in November. Institutional projects, such as education and healthcare, rose 11.4% during the month. Other categories with steady increases included parking garages and the retail and warehouse industries, according to the report.

Here are the largest projects to break ground in November, according to Dodge.

• The $1.8 billion LAX Terminal 5 renovation and reconstruction in Los Angeles.
• The $1.7 billion Entergy Meta substations in Rayville, Louisiana.
• The $922 million Easley renewable energy solar array in Dester Center, California.
• The $900 million New Castle Bluff Energy Center natural gas power plant in St. Louis.
• The $800 million Amazon data center in Olive Township, Indiana.
• The $797 million UCSF Benioff Children’s Hospital campus in Oakland, California.
• A $391 million residential mixed-use project in Seattle.
• The $228 million Marine Drive apartments and parking in Buffalo, New York.
• The $224 million Namdar mixed-use residential, swimming pool and parking project in Miami.

Nonbuilding starts, such as highways, bridges and other infrastructure, posted the steepest decline in November. Starts in the group fell 43.7%, led by sharp decrease in utility projects, according to the release.

Still, even with the nosedive in project starts in November, nonbuilding activity remains strong on a longer horizon. On a year-to-date basis through November, nonbuilding starts posted a 17.5% increase. For the 12 months ending November 2025, total nonbuilding starts jumped 18%, according to Dodge.

Residential construction, on the other hand, posted a rare positive month, with starts in the industry up 13.3% in November, according to the release. On a longer term basis, however, activity trailed 2024’s pace. Through the first 11 months of 2025, residential starts decreased 4.9%. For the 12 months ending November 2025, total residential starts dropped 3.6%, according to Dodge.