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U.S. Construction Market | Market Snapshot Q4 - 2021
The decline in Chicago’s construction volume does not tell the whole story. The city’s population has not changed significantly over the last 30 years, and there were as many residents in 2020 as there were in 1920. Cities experiencing sustained growth, like those on the west coast, need residential, commercial, and infrastructure projects to accommodate their new residents. Chicago simply does not have this problem. Rather than expanding, therefore, Chicago’s construction market has pivoted to replacing and renovating existing structures. Chicago still has some distance to cover before the economy returns to pre-pandemic levels. The unemployment rate is still considerably higher than before the pandemic, meaning that a lot of workers have yet to find something. Chicago has one of the most diverse economies of any city in the country. Combined with a low cost of living and connections to the rest of the country, this makes the city an attractive option for businesses looking to set up shop. Forecasts earlier in the year have proven to be optimistic, but there is still much to do in Chicago’s market.
Total Construction Market Volume by Sector (x $1m, Nominalized 2012$) Annual Volume (x$1m, 2012$)
* This includes religious buildings, amusement, government communications and public recreation projects.
Regional Construction Employment
Construction Volume vs Labor - Annual Increase/Decrease Construction Spending Index 2010-2021 (2010=1.0)
Top Regional Projects Sorted by Construction Value
U.S. Construction Market | Market Snapshot Q4 - 2021
The construction market in Dallas has proven to be steady and reliable, and this is predicted to continue. Residential projects that began during the pandemic are wrapping up, which will cause overall volume to decline in 2022 and 2023. The infrastructure sector saw a lot of attention over the last few years, as remote work presented a unique opportunity for roadwork with little disruption. The overall forecast, however, has not changed significantly since our last report. The Dallas-Fort Worth Metroplex is one of the fastest growing cities in the country. On a typical day, 30 people move here. Thanks to the many freeways and thoroughfares in the city, it has grown outwards instead of upwards. This creates consistent demand for roads, highways, and low-density commercial developments. This also means that Dallas has a larger construction market than denser cities of a similar population, which can improve existing developments rather than build new ones outright.
Total Construction Market Volume by Sector (x $1m, Nominalized 2012$) Annual Volume (x$1m, 2012$)
* This includes religious buildings, amusement, government communications and public recreation projects.
Regional Construction Employment
Construction Volume vs Labor - Annual Increase/Decrease Construction Spending Index 2010-2021 (2010=1.0)
Top Regional Projects Sorted by Construction Value
U.S. Construction Market | Market Snapshot Q4 - 2021
The Denver market has consistently outperformed forecasts since the year began. Final numbers should show the market growing by almost 20% in 2021, mainly due to the residential sector. 2022, however, is expected to represent a return to form for the market. The spike in activity over the last year likely has two causes: first, the wave of residential construction that has taken place in every city. Second, a lot of projects were either paused, cancelled, or put on hold when the pandemic started in 2020. Now that things have at least stabilized, these projects have finally resumed. This depressed volume in 2020 and increased it in 2021. Denver lies nearly equidistant between large cities on the East Coast and Midwest, meaning that the city is a natural hub for distribution and warehousing. This has helped keep the city’s unemployment rate below the national average, although it still has some ground to cover before returning to pre-pandemic levels. Construction employment remains low; however, combined with the expected decrease over the next few years, this is not expected to drive up costs in the short term.
Total Construction Market Volume by Sector (x $1m, Nominalized 2012$) Annual Volume (x$1m, 2012$)
* This includes religious buildings, amusement, government communications and public recreation projects.
Regional Construction Employment
Construction Volume vs Labor - Annual Increase/Decrease Construction Spending Index 2010-2021 (2010=1.0)
Top Regional Projects Sorted by Construction Value
U.S. Construction Market | Market Snapshot Q4 - 2021
After a very active beginning to the year, construction in the Twin Cities is set to decline through 2023. This is not nearly as bad as it sounds, however. The market has simply been inflated in recent years, and it is beginning to return to normal. Employers are adjusting to working from home, people are returning to the city center, and the commercial sector is accommodating the rise of e-commerce. A few big projects are also nearing completion, further adding to volume for 2021. The local economy has also generally recovered, and today there are more people going to work than before the pandemic. Construction employment is still below 2019 levels, but this is likely to remain so as overall volume decreases. Minneapolis and neighboring St. Paul have vaccination rates higher than the rest of the nation, meaning that the new Omicron variant of the coronavirus is not as worrying here as it is in less-vaccinated communities.
Total Construction Market Volume by Sector (x $1m, Nominalized 2012$) Annual Volume (x$1m, 2012$)
* This includes religious buildings, amusement, government communications and public recreation projects.
Regional Construction Employment
Construction Volume vs Labor - Annual Increase/Decrease Construction Spending Index 2010-2021 (2010=1.0)
Top Regional Projects Sorted by Construction Value
U.S. Construction Market | Market Snapshot Q4 - 2021
Nashville is frequently described as a 21st century boomtown, and the city’s construction volume reflects this. In a city that added almost 100 people each day to its population in 2017, it should come as no surprise that the residential sector is the largest here. The rise of e-commerce and remote work have kept commercial volume relatively constant as well, as these new residents can shop online and have goods shipped. Infrastructure spending remains relatively constant, as the city pivots to maintaining its existing roads and bridges instead of building new ones. Nashville’s recovery has been making steady progress over the last year. Unemployment is within a few percentage points of 2019 levels, and construction employment has grown steadily throughout the pandemic. The next few years are likely to see a decline in overall volume as the market adjusts to new trends in work and leisure. There is, however, plenty to do now.
Total Construction Market Volume by Sector (x $1m, Nominalized 2012$) Annual Volume (x$1m, 2012$)
* This includes religious buildings, amusement, government communications and public recreation projects.
Regional Construction Employment
Construction Volume vs Labor - Annual Increase/Decrease Construction Spending Index 2010-2021 (2010=1.0)
Top Regional Projects Sorted by Construction Value
U.S. Construction Market | Market Snapshot Q4 - 2021
Salt Lake City’s economy has proven to be robust and adaptable and has almost completely recovered from the recession caused by COVID-19. There are, of course, still a few issues to contend with, but overall indicators are in line with 2019 levels. This includes construction volume, which is set to return to roughly pre-pandemic levels. The residential sector remains strong here, and the population continues to grow. The city is looking to become greener, which is reflected in its infrastructure volume. Currently, most of Utah gets its electricity from coal and natural gas and is expected to invest in green energy to help reduce its carbon footprint and improve air quality. Salt Lake City and the surrounding Wasatch Front lead the rest of Utah in vaccination rates, although both are somewhat behind the national average. The city did not enact strict lockdowns like those on the East Coast to control the spread of COVID-19. The effects of this will take some time to fully play out, but the city has had both better economic performance and more cases per capita than its contemporaries back east.
Total Construction Market Volume by Sector (x $1m, Nominalized 2012$) Annual Volume (x$1m, 2012$)
* This includes religious buildings, amusement, government communications and public recreation projects.
Regional Construction Employment
Construction Volume vs Labor - Annual Increase/Decrease Construction Spending Index 2010-2021 (2010=1.0)
Top Regional Projects Sorted by Construction Value
