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ConstructConnect, a leading provider of software solutions for the preconstruction industry, said today that Total U.S. Construction Starts are forecast to grow by 5.2% in 2025 in its Spring Construction Starts Forecast.
According to ConstructConnect Chief Economist Michael Guckes, the growth outlook is fueled by several factors. These include “a solid near-term economic outlook, government infrastructure investments, and the anticipated effects of rate-cutting cycles.”
Guickes added that while the growth outlook is positive, it is not without risk. “While headwinds like rising tariffs and labor shortages persist, these efforts are expected to drive momentum across key construction sectors.”
The Spring 2025 outlook for the construction industry includes these highlights:
Nonresidential Construction
Nonresidential construction starts are forecast to grow by 3.6% in 2025—a return to expansion after a slight decline in 2024.
Guckes noted that the rebound comes as construction finds a new equilibrium following post-pandemic record activity.
- Manufacturing is likely to return to an upward trend, with a growth forecast of 13.4%.
- Private Offices are expected to grow 16.3%, largely due to multiple Data Center projects.
- Shopping, Retail, Hotels, and Motels are expected to grow above 14%, responding to the gradual resurgence of social and economic activity.
- Despite overall growth, subsectors such as Prisons, Hospitals, and Sports Stadiums are forecast to decline, with reductions of 29%, 9%, and 24.6%, respectively.
Civil Construction
Civil construction continues to see robust demand, with a growth forecast of 7% in 2025.
- Power Projects, Oil & Gas, and Tunnels stand out, with growth expected to be 19.2%, addressing U.S. energy needs and other large-scale demands.
- New Roads, Bridges, and Dams are anticipated to grow by approximately 11%, continuing the trend of heavy infrastructure spending.
- Airport starts are expected to experience a 36.7% dip from previous highs in activity.
Residential Construction
Guckes reported that after two challenging years marked by declining activity, the Residential sector is poised for a comeback in 2025. With projected growth of 5.7%, he said multiple factors, including declining interest rates and rebuilding efforts following natural disasters, will drive the recovery.
- Single-family Homes: Residential Starts are projected to grow by 3.4%, bolstered by rebuilding initiatives, particularly in wildfire-impacted areas such as California.
- Multi-family Construction: A rise of 10.8% is expected after two years of significant declines, though risks such as overcapacity and high financing costs still linger.
Get the Spring 2025 Construction Starts Forecast
About the Construction Starts Forecast
Updated quarterly, the Construction Starts Forecast provides a five-year outlook of U.S. and Canadian construction starts by type of structure and geography, down to the county level.
Total estimated dollar and square footage values for residential, nonresidential building, and heavy engineering (civil) construction are provided with a summary report that analyzes drivers influencing each building sector.
Produced in collaboration with Oxford Economics, the report is grounded in historical patterns and forward-focused analytics. It is designed to help construction professionals anticipate and adapt to a continuously evolving construction economy landscape.
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About ConstructConnect
Construction Starts Here™ at ConstructConnect, where our mission is to help the construction industry start every project on a solid foundation. A leading provider of software solutions for the preconstruction industry, ConstructConnect empowers commercial construction firms to streamline their workflows and maximize productivity. ConstructConnect operates as a business unit of Roper Technologies (Nasdaq: ROP), a constituent of the Nasdaq 100, S&P 500, and Fortune 1000.
