A familiar term encapsulated April’s decline in total construction starts: uncertainty.
Over the month, total construction starts declined by 9% to a seasonally adjusted annual rate of $1.03 trillion, according to Dodge Construction Network (DCN). Nonresidential building starts fell by 3%, and residential starts dropped by 4%. According to DCN’s chief economist Eric Gaus, the decline was due to continued project delays amid back-and-forth tariff announcements.
“Broad-based monthly declines in construction starts represent a troubling signal for the sector,” says Gaus. “While not definitive, the slowdown in April aligns with delays in the planning pipeline and other economic data that capture the volatility and uncertainty of all the April tariff announcements. Uncertainty around trade policy and the economy’s direction will continue to weigh on construction activity in the coming months.”
On a year-to-date basis through April, total construction starts were down 3%. Nonresidential starts were down 10%, while residential starts were down 5%. For the 12 months ending April 2025, total construction starts were up 2% from the 12 months ending April 2024. Residential starts were flat, and nonresidential starts were up 1%. 
Nonresidential
Nonresidential building starts declined by 3% in April to a seasonally adjusted annual rate of $391 billion. Commercial starts were 21% lower in April, alongside weaker retail, office and warehouse starts. Conversely, institutional starts were up 2% following stronger healthcare and education starts. Manufacturing starts grew 78% over the month, as well. On a year-to-date basis through April, nonresidential starts are down 10% compared to April 2024. Commercial starts are up 3% and institutional starts are down 4% over the same period.
The most significant nonresidential building projects to break ground in April were the $1 billion Kaiser Permanente Medical Center in Sacramento, California, the $940 million Bally’s River West Hotel and Casino in Chicago and two buildings for the GM & Samsung SDI Battery Cell Factory in New Carlisle, Indiana, valued at $855 million and $875 million, respectively.
Residential
Residential building starts fell 4% in April to a seasonally adjusted annual rate of $360 billion. Single-family starts decreased by 5%, while multifamily starts receded by 3%. On a year-to-date basis through April, residential starts are down 5%, single-family starts down 6% and multifamily starts down 4%.
The largest multifamily structures to break ground in April were a $331 million residential and retail development in Jersey City, New Jersey, the $256 million Vista Point apartments at Fairview Life Care Community in Groton, Connecticut, and the $226 million Rambler Riverfront District apartments in West Lafayette, Indiana.
Regionally, total construction starts in April rose in the Midwest, and declined in the Northeast, South Atlantic, South Central and West.
Source: DCN with additional information added by GlassBalkan
