Winter 2024 Construction Starts Forecast

ConstructConnect, a leading provider of software solutions for the preconstruction industry, announced that Total US Construction Starts are forecast to grow 8.5 percent in 2025.

Michael Guckes, Chief Economist at ConstructConnect, reported that the forecast is driven largely by the positive economic outlook, strong government spending, and falling interest rates, which help support growth in the Residential and Nonresidential Building sectors.

Select highlights from the US Construction Starts forecast:

• Commercial construction is expected to grow by 7% in 2025 after broadly stagnating during 2024. 

• Civil Engineering will remain strong but not grow at the same levels as in the previous few years.
   
• After two years of large declines, we expect Total Residential Building to return to growth in 2025, expanding by 12%.  

In the Canadian Construction Starts forecast:

• Canadian Construction Starts are expected to grow by 5.2% in 2025, an improvement following the stagnation seen in 2024.

• An improving macroeconomic situation in the second half of 2025 will support construction, and there is a strong pipeline of large upcoming projects, especially in Power Infrastructure.

• Residential Starts are forecast to grow by 11.2% in 2025, a return to growth after poor performance in previous years. 

Get the Winter 2024 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 includes an analysis of 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 landscape.