U.S. construction market projected to reach $2.85 trillion by 2031

The U.S. construction market is projected to reach $2.85 trillion by 2031, according to a report by Merlo America and BiltData.ai. This represents an increase of more than $600 billion from the $2.22 trillion forecast for 2026. Growth is expected to be concentrated in specific sectors, including data centers, industrial construction, residential building, infrastructure, and agriculture.

Geographically, California, Texas, Florida, New York, and New Jersey are expected to account for approximately 42% of total U.S. construction spending by 2031. The New York-Newark-Jersey City metropolitan area is forecast to lead the market with $230 billion in spending, representing about 8% of the national total.

Simultaneously, the industry faces significant labor challenges. Associated Builders and Contractors indicates that the sector will need 349,000 net new workers this year, a figure expected to rise to 456,000 by 2027. To combat shortages and project delays, some developers are shifting toward offsite manufacturing methods, such as unitized curtain walls, to reduce the amount of onsite labor required.