Construction Economic News | ConstructConnect

East-West Divide Continues in Nonresidential Regional Starts

Written by Marshall Benveniste | Apr 23, 2025 3:46:58 PM

 

ConstructConnect Chief Economist Michael Guckes reported in the April Construction Economy Snapshot that regional Nonresidential activity in the year-to-date (YTD) period through March “continues to emphasize a strong west-east divide.”

In the West and Mountain regions, spending YTD is down 40% from a year ago, a slight improvement from recent months. Of note, California, which accounts for nearly 2/3rds of all West region spending, is down 19%.

Moving eastward, regional performance improves to varying degrees. The four census divisions encompassed by the states of North Dakota, Texas, Alabama, and Ohio have varied in performance, with the worst down 30% and the best up 27%.

Map of Total Nonresidential Construction Starts through March 2025 by Census Divisions, from The Construction Economy Snapshot, April 2025. Image: ConstructConnect

The three divisions that capture the entire East Coast have per[1]formed well in 2025, with performance ranging between 14% and 29%. Nonresidential Building (NRB) continues to severely underperform in the West, East North Central, and East South Central divisions, with starts activity more than 50% below year-ago comparables.

Conditions are much better along the East Coast, Guckes reported, with the South Atlantic, Middle Atlantic, and New England divisions all reporting gains of between 18% and 28%. Leading states along the East Coast include Massachusetts (+67%), Pennsylvania (+33%), and North Carolina, up a staggering 200%.

Guckes said, “Repeating last year’s trend, Civil Construction is again benefiting much of the country, with only the West Coast and Mountain Divisions reporting contracting levels of civil activity through March.”

The fastest growing areas include the West North Central (+62%), led by Missouri (+209%), and Kansas (+45%).

The East North Central (+54%) follows behind, led by Ohio (+229%) and Illinois (+37%).

Through March 2025, the year-to-date ranking of the top 20 states by dollar volume of Total Nonresidential Construction Starts. Image: ConstructConnect

Read the Construction Economy Snapshot for more details, including trend graphs, analysis, and commentary from Chief Economist Michael Guckes.

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