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Bettesworth Construction
Construction Planning

Education and Healthcare Projects Lifted U.S. Construction Planning in September 2026

U.S. nonresidential planning rose in September 2026 as institutional projects gained, offsetting weaker commercial planning. The index tracks projects entering planning, not current construction spending.

By Bettesworth Construction Team 3 min read
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U.S. nonresidential building planning rose 2.4% in September 2026, led by a sharp increase in institutional projects such as education, healthcare and government buildings. The gain reflects projects moving into the planning pipeline—not more completed construction or a matching rise in current spending.

Why did construction planning rise in September?

The Dodge Momentum Index (DMI) increased 2.4% month over month to 288.0 (2000=100), from a downwardly revised 281.3 in August, according to Dodge Construction Network’s October 7, 2026 release. Institutional planning rose 9.4%, more than offsetting a 1.3% decline in commercial planning. Dodge attributed the institutional strength to education, healthcare and public building planning.

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Sarah Martin, Dodge’s director of economic research, said institutional planning led the month’s growth, with milder gains across several other commercial sectors. Her interpretation points to a stronger institutional pipeline, not a uniform upswing across all building types.

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What the index measures—and what it does not

The DMI is a monthly measure based on the three-month moving value of nonresidential building projects entering planning. Dodge says it leads nonresidential building construction spending by 12 to 18 months. It is a forward-looking indicator: a project’s entry into planning does not mean it has broken ground, reached completion or generated construction spending.

That distinction matters when reading the September increase. The 2.4% is a change in the index of planning activity, not a measure of September construction expenditures. Similarly, the values reported for individual projects are project values, not money spent during the month.

How the monthly and annual comparisons differ

The month-over-month and year-over-year figures tell complementary stories. In September, institutional planning gained while commercial planning dipped. Compared with September 2025, the overall index was higher, but the improvement was concentrated in institutional planning.

Measure Change Comparison
Overall DMI Up 2.4% to 288.0 Month over month; August was revised down to 281.3
Institutional planning Up 9.4% Month over month
Commercial planning Down 1.3% Month over month
Overall DMI Up 3.7% Year over year
Institutional planning Up 17.2% Year over year
Commercial planning Down 3.0% Year over year

These figures, published by Dodge on October 7, 2026, cover the U.S. DMI for September 2026. Taken together, they show institutional planning growth alongside weaker commercial planning—not broad-based growth across the entire nonresidential market.

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Why data centers change the commercial picture

Data centers account for a large share of commercial planning, and the comparison is sensitive to the late-2025 surge in data-center activity. Dodge said commercial planning would have been down 14.9% year over year in September if data centers were excluded, compared with the reported 3.0% decline including them.

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The exclusion is a useful measure of how much data centers affect the commercial trend; it is not the headline commercial result. Even with data centers included, commercial planning declined year over year, while institutional planning rose substantially.

Large projects that entered planning

Dodge reported 45 projects valued at $100 million or more entering planning during September. Among the largest institutional examples were:

  • Duke Raleigh Hospital addition: $346 million, Raleigh, North Carolina.
  • Spartanburg Regional Heart & Vascular Hospital: $325 million, Spartanburg, South Carolina.
  • WakeMed Hospital: $319 million, Wendell, North Carolina.

The largest commercial examples included the $480 million Project North data center in Jermyn, Pennsylvania, and two $473 million data centers, EDCAUS15 and EDCAUS16, in Bastrop, Texas. These are examples of projects entering planning, not a complete list of the 45 projects or a record of September spending.

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What September’s reading signals for construction

The September index points to stronger institutional project planning and a weaker commercial pipeline, with data centers materially affecting the commercial year-over-year comparison. Because the DMI leads nonresidential building spending by 12 to 18 months, it can offer a directional view of future activity, but it does not establish which projects will proceed, when they will start or how much will ultimately be spent.

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