United States Construction Industry Report 2024-2028: Trillion Dollar Market Is Set For Steady Growth Despite Short-Term Challenges

(MENAFN- GlobeNewsWire - Nasdaq) Dublin, Sept. 30, 2024 (GLOBE NEWSWIRE) -- The "United States construction industry Databook Series - market Size & Forecast by Value and Volume (area and units), Q2 2024 Update" report has been added to ResearchAndMarkets.com's offering.
The construction industry in the United States is expected to grow by 5.6% to reach USD 1.27 trillion in 2024. A CAGR of 5.0% is projected during 2024-2028, with the country's construction output expected to reach USD 1.54 trillion by 2028, indicating substantial growth potential.

This market intelligence report offers a comprehensive view of market opportunities in the building and infrastructure construction industry at the country level. With over 100+ KPIs covering growth dynamics in building and infrastructure construction, construction cost structure analysis, and analysis by key cities in the United States, this databook provides a wealth of data-centric analysis with charts and tables, ensuring stakeholders are fully informed.

Despite near-term challenges in certain construction sectors, the United States's construction industry is poised for significant growth. The industry is expected to grow steadily over the next four quarters, with the growth momentum continuing over the forecast period.

The U.S. construction industry shows resilience and growth potential despite challenges like rising costs and labor shortages. With strong government support, particularly through the Infrastructure Investment and Jobs Act, and advancements in technology, the industry is expected to continue its positive trajectory. While single-family residential and industrial sectors are poised for growth, the multifamily and institutional sectors may face hurdles, highlighting the sector's adaptability and importance to the U.S. economy.
The residential and commercial segments remain strong, and the outlook for the industry is positive, supported by technological advancements and a recovering economy.
The Residential Construction Outlook

• The U.S. residential construction sector has seen single-family housing recovering while the multifamily segment faces challenges.
• Single-family homebuilding has seen modest increases compared to the same period in 2022, supported by factors such as:
• Mortgage rates have stabilized after sharp increases, and builders are offering incentives to lower interest rates, making new housing more affordable. As a result, modest gains in single-family spending are expected throughout 2024 compared to 2023.
• Multifamily Construction - The multifamily construction segment has faced headwinds, with spending stagnating since August 2023.

Key challenges include:

• Higher interest rates and tighter lending standards pushing up costs
• Rents flattening or falling in many markets

The Commercial Construction Outlook

• Increasing Demand for Office Space - Due to expanding corporate activity, the demand for office spaces in major U.S. cities like New York, Los Angeles, and Chicago has increased. As of September 2024, the total flexible office space in these cities reached 43.5 million square feet, with a national flexi space penetration of 6.3% in Grade A office stock.
• Government Initiatives and Foreign Investments - The U.S. government's focus on infrastructure development, including the Infrastructure Investment and Jobs Act, has increased demand for commercial real estate assets. A stable political environment has boosted investor confidence, leading to substantial investments by foreign and domestic investors in commercial real estate.
• Adoption of Modern Technologies - In recent years, the commercial construction sector has advanced with modern machinery, sustainable materials, and technologies like Building Information Modeling (BIM) and geospatial technologies, improving project efficiency, quality, and sustainability.
• Resilience and Growth Trajectory - The commercial construction sector has shown resilience and is poised for transformative growth, adapting to emerging trends such as the rise of co-working spaces and a focus on health, wellness, and sustainability in office design.

The Institutional Construction Outlook

• The USA's institutional construction sector has shown resilience and adaptability, driven by federal investments and a focus on infrastructure development. Projects funded by the Infrastructure Investment and Jobs Act (IIJA) are expected to enhance public facilities.
• Despite rising costs and labor shortages, construction spending has increased, focusing on clean energy and manufacturing projects. The demand for modernized educational and healthcare facilities remains strong.
• In the future, institutional construction is expected to receive continued federal support for critical infrastructure projects, signifying the industry's crucial role in the USA's economic recovery and development.

The Industrial Construction Outlook
The U.S. industrial construction sector has shown resilience and adaptability over the past few months, driven by strong demand for manufacturing facilities and government initiatives aimed at boosting domestic production.

This growth is supported by:

• Increased investment in electronics manufacturing, particularly semiconductor facilities
• Ongoing efforts to bring manufacturing back to the U.S. shores
• Favorable policies such as tax incentives and streamlined regulations

Government Support - The U.S. government's focus on infrastructure development and domestic manufacturing has provided significant support to the industrial construction sector.

Key initiatives include:

• The Infrastructure Investment and Jobs Act (IIJA), which allocates substantial funding for transportation, energy, and water infrastructure projects
• Tax credits and incentives for companies investing in U.S. manufacturing facilities

Challenges and Outlook

Despite the overall positive trends, the industrial construction sector has faced some challenges, such as:

• Rising material costs and labor shortages, which have impacted project timelines and budgets
• Uncertainty surrounding global trade policies and their impact on domestic manufacturing

Scope: This report provides market size and forecast across 40+ construction segments for ten years from 2019 - 2028 in United States

KPIs covered include the following:

• Market size by value
• Market size by volume of construction
• Number of units

United States Economic Indicators
United States Top Cities Construction Data
United States Residential Building Construction Coverage: 10-year market size & forecast in value and volume (area and units) terms by

• Housing type (multi family, single family)
• Key cities (Tier - 1, Tier - 2, Tier - 3 segmentation)
• Price point/income level (luxury, mid-tier, affordable)
• Construction stage (new construction, re-development & maintenance)

United States Residential Green Building Construction Coverage: 10-year market size & forecast in value and volume (area and units) terms by

• Green building by Housing type (multi family, single family)
• Green building by Key cities (Tier - 1, Tier - 2, Tier - 3 segmentation)
• Green building by Price point/income level (luxury, mid-tier, affordable)

United States Commercial Building Construction Coverage: 10-year market size & forecast in value and volume (area and units) terms by

• Office (further broken down by Grade A, Grade B, and Grade C)
• Retail (further broken down by Grade A, Grade B, and Grade C)
• Hospitality (further broken down by Grade A, Grade B, and Grade C)
• Restaurant (further broken down by Grade A, Grade B, and Grade C)
• Entertainment
• Sports facility
• Other commercial building construction
• Construction stage (new construction, re-development & maintenance)

United States Commercial Green Building Construction Coverage: 10-year market size & forecast in value and volume (area and units) terms by

• Office green building construction
• Retail green building construction
• Hospitality green building construction
• Restaurant green building construction
• Entertainment green building construction
• Sports facility green building construction
• Other commercial green building construction

United States Industrial Green Building Construction Coverage: 10-year market size & forecast in value and volume (area and units)

• Manufacturing Plants building construction
• Chemical & Pharmaceutical building construction
• Metal & Material Processing building construction
• Construction stage (new construction, re-development & maintenance)

United States Institutional Building Construction Coverage: 10-year market size & forecast in value and volume (area and units) terms by

• Healthcare construction
• Educational construction
• Other building construction
• Construction stage (new construction, re-development & maintenance)

United States Institutional Green Building Construction Coverage: 10-year market size & forecast in value and volume (area and units) terms by

• Healthcare green building construction
• Educational green building construction

United States Infrastructure Construction Sectors: 10-year market size & forecast in value terms by

• Marine and inland water infrastructure
• Utility system construction (oil and gas infrastructure, communication infrastructure, power infrastructure, water and sewer infrastructure)
• Transportation infrastructure (highway, street and bridge construction, railway construction, airport construction, and tunnel construction)
• Construction stage (new construction, re-development & maintenance)

United States Green Infrastructure Construction: 10-year market size & forecast in value terms

United States Construction Cost Structure Analysis: 10-year market size & forecast in value terms

• Cost Analysis by Type (Material, Labour, Equipment, Others)
• By Material & Work Cost: It provides the cost outlook of material costs by type of materials used in construction (Cement, Steel, Sand, Aggregates, Bricks, Wood, Windows Glazing, Flooring, Plumbing, Electrical, Painting, Other Materials)
• By Labour Cost: It provides the cost outlook of labour costs (RCC Construction Work, Masonry and Plastering Work, Plumbing Work, Water Proofing Work, Carpentry Work, Electrical Work, Tile Fixing Work, CATV Antenna Points, Painting Work, Departmental Labour)
• By Type of Construction (New, Re-Development)
• By Material Cost: It provides the cost outlook of material costs by type of materials used in construction (Concreting Sand, Stone Aggregate, Ordinary Portland Cement, Reinforced Concrete (Grade 30 MPA), Reinforced Concrete (Grade 40 MPA), High Tensile Steel bars, Mild Steel Round Bars, Structural Steelwork, Plywood Formwork (1800*900*12mm), Clay Bricks)
• Type of Labour (Skilled vs. unskilled)

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