Value of construction

The total value of construction is set to decline -0.7% in 2026 to reach $1.40 billion. From 2021 to 2026, the total construction market in the US experienced an overall annualized decline of -0.8%. 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 a -3.7% contraction to $1,402 billion. The cumulative decline from 2021–2026 was 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.