US Construction Starts Fall 24.8% in August as Megaproject Surge Fades

Total U.S. construction starts dropped 24.8% in August to a seasonally adjusted annual rate of $1.34 trillion, according to Dodge Construction Network data released September 21, 2026, reversing much of July's megaproject-driven surge. Nonresidential starts fell 32% month over month, led by an 80.8% plunge in manufacturing construction. Office and data center groundbreakings dropped 31.3%. Institutional construction declined 18.1%, and nonbuilding starts fell 26.7%. Residential posted a smaller 5.2% decline. Healthcare was the outlier, jumping 96.1%. Despite the monthly pullback, total starts remain up 15.2% through the first eight months of 2026, with nonresidential and nonbuilding gaining 23.4% and 22.2%, respectively. Residential slipped 1.8%. August's largest groundbreaking was the $3.5 billion Amazon STACK Blanchard State Line data center in Mooringsport, Louisiana.