US and Key States Construction Industry Report 2025 | Output to Decline Sharply in 2025 Compared to 2024, Due to Input Costs, Tariffs, Increasing Project Delays, and Weak Investor Confidence - ResearchAndMarkets.com

DUBLIN--(BUSINESS WIRE)--The "The US and Key States Construction Market Size, Trends, and Forecasts by Sector - Commercial, Industrial, Infrastructure, Energy and Utilities, Institutional and Residential Market Analysis to 2029 (Q2 2025)" report has been added to ResearchAndMarkets.com's offering.

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).

Scope

• 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

Key Topics Covered:

1 Executive Summary

2 Construction Industry: At-a-Glance

3 Context

3.1 Economic Performance

3.2 Political Environment and Policy

3.3 Demographics

3.4 Risk Profile

4 Construction Outlook

4.1 All Construction

• Outlook
• Latest news and developments
• Construction Projects Momentum Index

4.2 Commercial Construction

• Outlook
• Project analytics
• Latest news and developments

4.3 Industrial Construction

• Outlook
• Project analytics
• Latest news and developments

4.4 Infrastructure Construction

• Outlook
• Project analytics
• Latest news and developments

4.5 Energy and Utilities Construction

• Outlook
• Project analytics
• Latest news and developments

4.6 Institutional Construction

• Outlook
• Project analytics
• Latest news and developments

4.7 Residential Construction

• Outlook
• Project analytics
• Latest news and developments

5 Construction in Key US States

5.1 California

• Outlook
• Latest news and developments

5.2 Florida

• Outlook
• Latest news and developments

5.3 Texas

• Outlook
• Latest news and developments

5.4 New York

• Outlook
• Latest news and developments

5.5 Pennsylvania

• Outlook
• Latest news and developments

5.6 Georgia

• Outlook
• Latest news and developments

5.7 Illinois

• Outlook
• Latest news and developments

5.8 Ohio

• Outlook
• Latest news and developments

5.9 Washington

• Outlook
• Latest news and developments

5.10 North Carolina

• Outlook
• Latest news and developments

6 Key Industry Participants

6.1 Contractors

6.2 Consultants

7 Construction Market Data

8 Appendix

For more information about this report visit https://www.researchandmarkets.com/r/xjq9as

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