Construction starts posted a headline-grabbing gain in October, but the underlying market looks far less robust. Total construction starts climbed 21.1% to a seasonally adjusted annual rate of $1.53 trillion, according to Dodge Construction Network—even as residential activity slid and much of the month’s growth flowed from nonbuilding work and a small cluster of ultra-high-value projects.

For roofing contractors and suppliers, that split matters: demand tends to follow building square footage and project mix more than dollar volume. Dodge reported nonresidential building starts rose 17.9%. In comparison, residential starts fell 15.4%, and noted that in square-footage terms, combined nonresidential and residential starts declined 4.3% in October and are down 5.4% year-to-date—signaling that megaproject-driven totals may not translate into broad-based roofing volume as 2025 winds down.

Chart: Dodge Contruction Network

Dodge attributed much of October’s strength to a wave of megaprojects. “Growth in construction starts continued to be propped up by high-value megaproject activity last month,” said Sarah Martin, associate director of forecasting at Dodge Construction Network. 

Martin noted that 10 projects valued at $1 billion or more broke ground, with the majority concentrated in data centers, manufacturing, and LNG.

“Outside of these high-tech buildings, however, growth appears more moderate,” she added, pointing out that in square-footage terms, combined nonresidential and residential starts fell 4.3% in October and are down 5.4% year-to-date.

On a year-to-date basis through October, Dodge reported total construction starts are up 5.9% versus the same period last year, with nonresidential starts up 5.6%, residential down 5.1%, and nonbuilding up 19.8%. Looking at the 12 months ending October 2025, Dodge said total starts rose 8.1% compared with the prior 12-month period, as nonbuilding starts increased 22.9% and nonresidential starts rose 7.5%, while residential starts declined 3.1%.

Regionally, Dodge reported total construction starts rose in October in the South Central (+84.9%), Midwest (+18.8%), South Atlantic (+8.7%), and West (+1.1%), while the Northeast fell 40.1% month over month.

Nonbuilding: Utilities Drive the Jump

Dodge reported nonbuilding construction starts surged 59.4% in October to a seasonally adjusted annual rate of $645 billion, led by a sharp increase in utilities activity (+384.5% month over month). Dodge also recorded gains in environmental public works (+18.6%) and miscellaneous nonbuilding (+10.1%), while highway and bridge starts fell 23.7%.

Among the largest nonbuilding projects Dodge said broke ground in October were the $15.1 billion Calcasieu Pass LNG Export Terminal and Pipeline in Louisiana, the $9 billion Rio Grande LNG Facility Phase 2 in Texas, and the $5.9 billion Frederick Douglass Tunnel Improvement in Maryland.

Dodge said nonresidential building starts increased 17.9% in October to a seasonally adjusted annual rate of $561 billion. Within that category, commercial starts rose 19.5%, driven by gains in offices and data centers (+45.5%) and retail stores (+15.1%), while hotels (-19.3%), warehouses (-1.7%), and parking garages (-46.1%) declined. Institutional starts rose 3.7%, supported by other institutional categories (+49.5%), though offset by weaker education (-20.8%) and healthcare (-2.7%). Dodge also characterized manufacturing as volatile, reporting a 107.2% increase in October.

Dodge listed the largest nonresidential projects starting in October as the $7.5 billion Meta Hyperion Data Center (Louisiana), the $1.9 billion expansion to the LA Convention Center in California, and the $1.7 billion Eli Lilly manufacturing facility in Indiana.

Residential: Single-Family up Slightly; Multifamily Falls Sharply

Dodge reported residential building starts fell 15.4% in October to a seasonally adjusted annual rate of $323 billion. Dodge’s breakdown showed single-family starts edged up 2.2%, while multifamily starts dropped 38.5%. Year-to-date through October, Dodge said residential starts are down 5.1%, with single-family down 12.3% and multifamily up 10.6%.