Value of construction

From 2020 to 2025, the total construction market in the US experienced muted growth following considerable turbulence in the previous decade. In 2020, construction value stood at $1,387 billion, having fully rebounded from the pandemic disruptions that marked 2020 as a year of both stress and adaptation. The sector expanded 5.0% in 2021 to $1,456 billion, supported by strong demand for new housing, commercial space, and the acceleration of logistics and infrastructure projects. The construction boom was spurred by historically low interest rates, the expansion of government stimulus programs, and rising consumer and business confidence.

However, momentum slowed in 2022 as market conditions shifted. The sector contracted by 3.7% to $1,402 billion amid rising interest rates, cost inflation for materials and labor, and new uncertainty linked to global supply chain woes. Builders faced high costs and evolving demand, with the single-family home market cooling after a record 2021, while non-residential segments rebounded with warehouse, data center, and health facility construction. Despite tighter financial conditions, construction resumed modest growth in 2023, rising 2.4% to $1,435 billion as supply chains began to normalize and pent-up demand supported new projects, especially in metropolitan areas with population and business growth.

By 2024, the sector crept up another 2.2% to $1,466 billion, but growth slowed again in 2025, with an expected 2.5% contraction to $1,430 billion. The cumulative change for 2020–2025 was a modest 3.1% increase ($43 billion), reflecting a suppressed compound annual growth rate of just 0.6%—a notable contrast to more robust expansion in the early 2000s or the late 2010s. The market continually adjusted to oscillating demand signals, with sharply divergent trends across regions and industry verticals: infrastructure, public works, healthcare, and multifamily housing offsetting weaknesses in single-family construction, office space, and retail. The construction market never fully returned to the historical peak of $1,444 billion in 2007, and the volatility seen earlier underscores the sector's exposure to macroeconomic and policy headwinds.