U.S. Construction Market Trends and Forecasts

This technical report details the performance and forecasts of the U.S. construction market for 2025 and beyond. It outlines the economic factors influencing construction starts, including economic uncertainty, elevated costs, and tariff policies, which have led to project delays. The report highlights that while total construction starts in the U.S. rose by 6.0% in 2024, a decline of 1.8% is anticipated for 2025. Nonresidential construction is projected to experience a decrease, particularly in sensitive segments, despite growth in data centers driven by AI and cloud computing. Residential construction starts are also forecasted to decline, with single-family homes expected to drop by 5% due to high interest rates. The report further discusses trends in nonbuilding construction and the impact of recent policy changes on infrastructure projects. Overall, the construction industry is facing headwinds that may affect future growth, with various segments showing differing trends in performance.