United States Construction Market Outlook
According to the report by Expert Market Research (EMR), the United States construction market reached a value of approximately USD 1.90 trillion in 2024. Aided by rapid urbanisation, infrastructure development initiatives, and a growing demand for residential and commercial real estate, the United States construction market size is expected to grow at a CAGR of 4.40% during the forecast period from 2025 to 2034, ultimately reaching around USD 2.92 trillion by 2034.
The construction sector in the United States is a critical component of the country’s economy, contributing significantly to GDP and employment. It encompasses a broad spectrum of activities, including residential, commercial, industrial, and infrastructure development. In recent years, the market has witnessed considerable expansion, driven by favourable economic conditions, government spending on infrastructure, and growing investment in real estate development. As the nation continues to prioritise resilient and sustainable infrastructure, the construction market is set to maintain steady and robust growth over the coming decade.
United States Construction Market Size
The substantial valuation of USD 1.90 trillion in 2024 reflects the strength and diversity of the United States construction market. This growth is backed by high consumer spending, low interest rates in the past decade, and sustained public and private sector investments. Residential construction continues to dominate the market, driven by increasing housing demand, population growth, and urban sprawl in metropolitan and suburban areas.
The commercial and industrial segments are also experiencing growth due to rising business activities, expansion of logistics and warehouse networks, and the recovery of tourism and hospitality sectors post-pandemic. Furthermore, federal initiatives like the Infrastructure Investment and Jobs Act have earmarked significant funds toward upgrading aging transport systems, utilities, and public buildings, contributing to the market’s expansion.
United States Construction Market Share
Residential construction accounts for the largest share of the United States construction market. This segment benefits from the steady increase in demand for single-family homes, multifamily units, and affordable housing. The growth is especially pronounced in Sun Belt states such as Texas, Florida, and Arizona, where economic migration, job opportunities, and lower tax environments have attracted large populations.
Commercial construction follows closely, supported by the growth in office buildings, retail outlets, hotels, data centers, and mixed-use developments. The rising influence of e-commerce has spurred demand for fulfillment centers and logistics hubs, giving a significant boost to industrial construction. Infrastructure construction, while holding a comparatively smaller share, is expected to expand rapidly due to increased federal and state-level investments in roads, bridges, airports, and public transit systems.
From a regional perspective, the Southern United States holds the largest market share, attributed to a favorable climate, lower construction costs, and population growth. Meanwhile, the Northeast and West Coast, although limited by regulatory complexities and land constraints, continue to see strong demand in high-value urban centers.
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United States Construction Market Trends
Several key trends are shaping the landscape of the United States construction market. A major trend is the shift towards sustainable and green building practices. Developers and contractors are increasingly adopting energy-efficient materials, renewable energy systems, and eco-friendly designs to comply with regulatory standards and meet the expectations of environmentally conscious buyers. Green certifications like LEED (Leadership in Energy and Environmental Design) are becoming increasingly mainstream in both residential and commercial projects.
Another significant trend is the growing integration of technology in construction processes. The adoption of Building Information Modeling (BIM), drones for site surveying, 3D printing, and project management software is enhancing efficiency, reducing costs, and improving safety across projects. Modular and prefabricated construction is gaining popularity as it accelerates project timelines and minimises material wastage.
The construction labor shortage has prompted increased investment in automation and robotics, especially in repetitive and high-risk tasks. Additionally, the use of smart building systems that incorporate Internet of Things (IoT) devices is on the rise, particularly in commercial properties, enabling real-time monitoring and operational efficiency.
Drivers of Growth
The United States construction market is propelled by a variety of growth drivers. Chief among them is the strong demand for residential housing, fuelled by population growth, increasing household formation, and urban migration. Millennials entering peak home-buying age and the ongoing need for affordable housing are adding to the residential demand.
Infrastructure investment is a crucial growth catalyst. The U.S. government has committed substantial funding to modernise the country’s infrastructure under bipartisan agreements. This includes upgrades to highways, water systems, airports, railways, and broadband networks. Such investments not only enhance public amenities but also stimulate job creation and economic growth.
The revival of the commercial real estate sector post-COVID-19, coupled with the boom in warehousing and logistics, is also bolstering market expansion. Retail development is evolving to accommodate new formats, including open-air shopping centers and mixed-use developments. Moreover, the influx of foreign direct investment in real estate and large-scale corporate relocations to tax-friendly states further drive construction activity.
United States Construction Market Segmentation
The market can be divided based on construction type, end use and region.
Market Breakup by Construction Type
- Demolition and New Constructions
- Additions
Market Breakup by End Use
- Commercial Construction
- Residential Construction
- Industrial Construction
- Energy and Utilities Construction
- Others
Market Breakup by Region
- New England
- Mideast
- Great Lakes
- Plains
- Southeast
- Southwest
- Rocky Mountain
- Far West
Competitive Landscape
Some of the major players explored in the report by Expert Market Research are as follows:
- Hensel Phelps Construction Company
- Lennar Corporation
- Kiewit Corporation
- D.R. Horton, Inc.
- Tutor Perini Corporation
- PCL Constructors Inc.
- Kajima Corporation
- Hochtief AG
- Pultegroup, Inc.
- NVR, Inc. (Ryan Homes)
- Others
Industry Analysis
The U.S. construction industry is highly fragmented, featuring a mix of large national firms and numerous small and medium-sized enterprises operating in regional markets. Large companies typically dominate the infrastructure and commercial sectors due to their capacity to manage large-scale, capital-intensive projects, while smaller firms thrive in residential and specialty trades.
Leading construction firms such as Bechtel, Turner Construction, Fluor Corporation, and Kiewit Corporation command significant market influence through long-standing reputations, advanced capabilities, and diversified portfolios. These companies are often involved in complex infrastructure, industrial, and public-sector projects.
Despite its growth, the industry is challenged by a persistent shortage of skilled labor. This has driven wages higher and affected project timelines. Workforce development programs and apprenticeship initiatives are being implemented across states to address this challenge. Additionally, rising material costs and supply chain disruptions continue to affect profitability and project execution. Contractors are adopting value engineering and supplier diversification strategies to manage these pressures.
Challenges and Opportunities
One of the key challenges facing the United States construction market is regulatory compliance. Zoning restrictions, building codes, and environmental regulations vary widely across states and municipalities, increasing project complexity and timeline uncertainties. Lengthy permitting processes can delay construction, especially in high-demand urban areas.
Another challenge is the high cost of materials such as steel, lumber, and concrete, which have experienced price volatility due to global supply disruptions, tariffs, and geopolitical tensions. Inflationary pressures have also affected financing, with rising interest rates impacting both developer margins and buyer affordability.
However, the market also presents numerous opportunities. The push for infrastructure modernization and climate-resilient structures presents long-term prospects for industry stakeholders. Investment in renewable energy infrastructure, such as solar farms, wind turbines, and EV charging stations, creates new avenues for construction companies.
The transition to smart cities and urban redevelopment offers immense scope for mixed-use developments, transportation infrastructure, and sustainable housing. Public-private partnerships (PPPs) and design-build contracts are gaining popularity as they enable faster project execution and risk sharing.
Moreover, the digital transformation of construction offers untapped opportunities for productivity gains, cost reduction, and improved quality control. Companies that leverage technology, data analytics, and integrated project delivery systems will be well-positioned to lead the market in the coming years.
United States Construction Market Forecast
The United States construction market is expected to witness sustained growth over the forecast period. With a projected CAGR of 4.40% between 2025 and 2034, the market is poised to reach a value of approximately USD 2.92 trillion by 2034. Key drivers such as strong residential demand, infrastructure upgrades, and commercial expansion will continue to underpin this trajectory.
As urbanisation intensifies and the country shifts toward a more sustainable, technologically advanced, and resilient built environment, the role of the construction industry will become increasingly pivotal. Companies that prioritise innovation, workforce development, and adaptability to evolving consumer needs and regulatory landscapes will emerge as market leaders.
Overall, the U.S. construction sector remains a dynamic and integral component of the national economy. With its broad scope, evolving trends, and growth potential, the market offers significant opportunities for investors, developers, contractors, and stakeholders across the construction value chain.
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