Project Costs Stymy Construction Planning
Date Posted: November 13, 2025
Posted In: News,
From Construction Dive: Macroeconomic pressures coupled with inflated project costs are weighing on developers’ appetite for new construction planning, according to Dodge Construction Network.
After a streak of record-setting months, the pipeline of future nonresidential construction shrank in October. The Dodge Momentum Index, which tracks nonresidential projects entering the planning stages and leads actual construction spending by a full year, fell 7.1% in October.
Commercial planning activity declined 2.9% during the month, along with a 15.2% drop in institutional projects, according to the report. Despite the pullback, the index still sits 35% above its year-to-date level from 2024, according to Dodge.
Indeed, compared to October of last year, planning activity climbed 52%, with commercial and institutional up 54% and 49%, respectively. However, if data center projects are excluded, commercial growth would sit at 43%, said Sarah Martin, associate director of forecasting at Dodge Construction Network, in the release.
“After several months of record-breaking levels, planning momentum slowed in October,” said Martin. “Activity remains solid across the board, especially for data centers and hospitals.”
Planning activity softened for other commercial sectors in October as well, including warehouses and hotels, said Martin. Institutional activity, which covers education projects, also lost momentum in October, she added.