News Summary Houston has seen a modest rise in construction activity, with total construction starts up by 1.7% over the previous month. The annual rate is approximately $1.23 trillion, reflecting positive trends despite declines in some sectors. Nonresidential building starts rose 3.4%, while residential construction experienced a 5.0% drop. Notable increases in nonbuilding construction, particularly in energy and infrastructure projects, signal ongoing investments. Overall, August highlighted a mix of growth and challenges across various construction sectors. Houston Reports Increased Construction Starts in August 2025 Construction activity in Houston experienced a modest rise in August 2025, with total construction starts increasing by 1.7% compared to the previous month. This brought the seasonally adjusted annual rate to approximately $1.23 trillion, reflecting ongoing development across various sectors despite some sector-specific declines. Overall Construction Starts and Year-to-Date Performance For the year through August 2025, total construction starts have risen by 1.9% relative to the same period in 2024. Nonresidential building starts have grown by 3.4%, although residential construction continues its downward trend with a 5.0% decline. Nonbuilding construction, such as large infrastructure projects, has notably increased by 8.1% year-to-date, signaling strong interest in major public and energy-related projects. Long-Term Trends and 12-Month Outlook Looking at a broader time frame, the 12 months ending August 2025 show a 4.7% increase in total construction starts over the previous year. However, within this period, residential starts have decreased by 1.2%, primarily due to a drop in single-family homes of 5.9%. Conversely, multifamily projects enjoyed an increase of 8.6%. During this year, nonresidential starts climbed by 4.8%. Notably, nonbuilding projects surged by 12.1%, underpinning ongoing investments in energy infrastructure and public facilities. Major Projects and Sector Highlights in August Nonbuilding Sector August’s significant nonbuilding projects include: $5.1 billion Woodside Louisiana LNG Facility (Train #3, Phase 1) in Sulphur, Louisiana. $2.9 billion Cheniere Corpus Christi LNG Facility (Trains 8 and 9, Stage 3B) in Gregory, Texas. $1.8 billion Kingston Energy Complex with Battery Storage in Kingston, Tennessee. Nonbuilding starts overall increased by 9.3% in August, showcasing strong activity in energy-related and infrastructure projects. Nonresidential Building In August, nonresidential building starts showed a decline to a seasonally adjusted rate of $431 billion. The commercial segment experienced a significant 12.0% decrease, with warehouse construction falling by 25.3% and retail space projects down by 11.3%. Despite this, institutional projects increased by 3.7%, driven by growth in education (+0.5%), healthcare (+2.8%), and other institutional categories (+9.9%). Major projects for August in this sector included: $880 million Geisinger Medical Center Tower in Danville, Pennsylvania. $666 million Fort Meade East Campus Office Building in Maryland. $540 million UM Shore Medical Center in Easton, Maryland. Residential Construction Residential starts experienced a 2.4% increase in August, reaching a seasonally adjusted annual rate of $364 billion. While single-family home starts fell by 5.4%, multifamily projects saw a notable rise of 15.5%. Year-to-date, residential starts declined by 5.0%, with single-family down by 11.7% and multifamily up by 9.9%. In the 12 months ending August 2025, total residential starts decreased slightly by 1.2%. Single-family declined by 5.9%, whereas multifamily building projects increased by 8.6%. Significant multifamily projects that started in August include: $619 million Kuilei Place Mixed-Use Residential Tower in Honolulu, Hawaii. $413 million 120 Brickell Residences in Miami, Florida. $383 million Coles Street Mixed-Use Development in Jersey City, New Jersey. Regional Variations Geographically, construction starts in August were uneven across the U.S. Most regions experienced declines, with notable decreases in the Northeast (-25%), Midwest (-10%), South Atlantic (-2%), and West (-12%). The only notable growth was in the South Central, where starts surged by 53%. Summary Overall, Houston and other regions saw a mix of growth and contraction across various construction sectors in August 2025. While nonbuilding and multifamily residential segments showed strength, commercial construction faced challenges, particularly in warehouse and retail developments. The ongoing investment in energy infrastructure and institutional facilities suggests a continued focus on large-scale public projects, even amid mixed signals in the overall construction landscape. 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