The analyst expects growth in the US’ construction industry to slow sharply in 2025, growing only 1%, in real terms, compared with 6.5% in 2024. This growth rate decline comes following low homebuilders’ sentiment and weak investor confidence, amid rising construction input prices, and increasing project delays. The imposition of ‘retaliatory’ tariffs on imports by the US on its global trading partners have resulted in price hikes on key building materials such as steel, lumber and aluminium, lowering project viability for firms and causing them to re-think strategic investments. According to the US Census Bureau, the price index of new single-family homes currently under construction, rose by 4.2% year-on-year (YoY) during January-April 2025, this comes after an annual rise of 2.2% annually in 2024. As a result, this has slowed residential output due to low housing demand, with the overall number of new housing permits granted during the initial first four months of 2025 decreasing by 3.5% YoY. This has also been accompanied by a 1.6% YoY reduction in new housing construction commenced.
The industry is expected to register an average annual growth of 1.9% from 2026 to 2029, supported by investments in the transportation, data center construction, housing, and manufacturing projects. One key development came in June 2025, when the Federal Highway Administration (FHWA) allocated $4.9 billion in grant funding as part of the Bridge Investment Program. The program aims to enhance further development of bridge projects across the country, along with $500 million more funds to replace and repair existing bridges. Overall, this initiative is expected to benefit approximately 42,000 bridges. In the same month, the FHWA also provided $500 million in grants to repair and replace aging bridges in 18 rural states in 2025, as part of the Competitive Highway Bridge Program (CHBP).
The Construction in the US and Key States - Key Trends and Opportunities to 2029 (Q2 2025) report provides detailed market analysis, information, and insights into the US’ construction industry, including:
The industry is expected to register an average annual growth of 1.9% from 2026 to 2029, supported by investments in the transportation, data center construction, housing, and manufacturing projects. One key development came in June 2025, when the Federal Highway Administration (FHWA) allocated $4.9 billion in grant funding as part of the Bridge Investment Program. The program aims to enhance further development of bridge projects across the country, along with $500 million more funds to replace and repair existing bridges. Overall, this initiative is expected to benefit approximately 42,000 bridges. In the same month, the FHWA also provided $500 million in grants to repair and replace aging bridges in 18 rural states in 2025, as part of the Competitive Highway Bridge Program (CHBP).
The Construction in the US and Key States - Key Trends and Opportunities to 2029 (Q2 2025) report provides detailed market analysis, information, and insights into the US’ construction industry, including:
- The US’ construction industry's growth prospects by market, project type and construction activity
- Critical insight into the impact of industry trends and issues, as well as an analysis of key risks and opportunities in the US' construction industry
- Analysis of the mega-project pipeline, focusing on development stages and participants, in addition to listings of major projects in the pipeline.
Scope
This report provides a comprehensive analysis of the construction industry in the US. It provides:
- Historical (2020-2024) and forecast (2025-2029) valuations of the construction industry in the US, featuring details of key growth drivers.
- Segmentation by sector (commercial, industrial, infrastructure, energy and utilities, institutional and residential) and by sub-sector
- Analysis of the mega-project pipeline, including breakdowns by development stage across all sectors, and projected spending on projects in the existing pipeline.
- Listings of major projects, in addition to details of leading contractors and consultants
Reasons to Buy
- Identify and evaluate market opportunities using our standardized valuation and forecasting methodologies
- Assess market growth potential at a micro-level with over 600 time-series data forecasts
- Understand the latest industry and market trends
- Formulate and validate business strategies using the analyst's critical and actionable insight
- Assess business risks, including cost, regulatory and competitive pressures
- Evaluate competitive risk and success factors
Table of Contents
1 Executive Summary2 Construction Industry: At-a-Glance7 Construction Market Data
3 Context
4 Construction Outlook
5 Construction in Key US States
6 Key Industry Participants
8 Appendix
List of Tables
List of Figures
