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U.S. Construction Market | Market Snapshot Q4 - 2021
The Honolulu market has changed little since our previous report: it is on track to make a full recovery this year and grow well into the 2020s. The city is simultaneously one of the most isolated and connected cities in the world, thanks to its tourism industry and position at the halfway point between Asia and North America. This means that it suffered the economic consequences of the pandemic while avoiding the high caseloads of the rest of the country. Fortunately, the city has a diverse economy and managed to recover quickly.
Total Construction Market Volume by Sector (x $1m, Nominalized 2012$)
Construction Volume vs Labor - Annual Increase/Decrease Annual Volume (x$1m, 2012$)
Construction Spending Index 2010 - 2021 (2010 = 1.0)
Top Regional Projects Sorted by Construction Value
* This includes religious buildings, amusement, government communications and public recreation projects.
Regional Construction Employment
U.S. Construction Market | Market Snapshot Q4 - 2021
The COVID-19 pandemic has renewed Las Vegas’ efforts to diversify its economy. This has largely been a top-down effort, with city officials passing favorable tax laws to attract high-tech and health-related companies. This effort has had mixed success. Rising costs in the Bay Area, however, present an opening for Las Vegas. To this end, the city has been investing heavily in infrastructure projects, data centers, and new schools. There are also residential developments that will hopefully hold tech workers one day. Thanks to the prominent role that the city’s casinos play in the local economy, Las Vegas was hit particularly hard by COVID-19. Unemployment hit nearly 35% in April. Things have been improving, but there is a long road ahead. Construction employment remains below pre-pandemic levels. Unemployment remains high. As many of these new projects work their way through the pipeline, however, we expect these issues to correct themselves.
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 Spending Index 2010-2021 (2010=1.0)
Construction Volume vs Labor - Annual Increase/Decrease Top Regional Projects Sorted by Construction Value
U.S. Construction Market | Market Snapshot Q4 - 2021
The economy in Los Angeles has improved over the last quarter. Although earlier predictions seemed overly pessimistic in hindsight, there are still significant obstacles on the road to recovery. Construction employment remains subdued, while unemployment remains high — particularly among the city’s young and uneducated workers. Meanwhile, things like wildfires and earthquakes pose a unique threat. That being said, the city has made a lot of progress and there is still reason to be optimistic. Many of these issues present an opportunity for construction. Buildings will need to be renovated to comply with seismic and fire ordinances, and roads will need to be upgraded to accommodate a new light rail network. Zoning changes to protect against wildfires will open up new areas of the city to development. In the short term, the residential sector is expected to remain dominant. The city is expected to continue its population growth, and all of these people will need somewhere to live.
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
2022 is expected to represent a return to normalcy for the Phoenix market. 2020 saw the market grow by an impressive 22%, which was followed by steady contraction throughout 2021. In 2022, it is expected to approach something of a steady state, with growth predicted to be higher than pre-pandemic levels. The residential sector makes up the lion’s share of this growth, thanks to work-from-home policies and record-low interest rates. Many projects that began in late 2020 or early 2021 are beginning to wrap up, the cumulative effect of which is expected to cause the market to contract. Phoenix is one of many cities that is hoping to become a haven for tech companies fleeing the rising costs of Silicon Valley. Many of the largest construction projects here are related to this — manufacturing plants for computer hardware and offices and apartments for tech workers are all at the top of the ticket. It is far too early to tell whether this will pay off, but early figures are promising — several high-profile companies have begun operations in the city.
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 Spending Index 2010-2021 (2010=1.0)
Construction Volume vs Labor - Annual Increase/Decrease Top Regional Projects Sorted by Construction Value
U.S. Construction Market | Market Snapshot Q4 - 2021
Portland’s construction market is expected to remain stable and steady in the coming years. Construction volume has made a full recovery, while construction employment is well on the way. Some of the largest projects here are related to things like light rail and highways, with plans to expand its streetcar network and a bridge across the Columbia River taking center stage. The Delta and now Omicron variants of the coronavirus have thrown a wrench into Oregon’s reopening plans, but there is still reason to be optimistic. Portland benefits from its connection to railroads, interstate highways, international air terminals, and low energy costs. These advantages remain and are likely part of why unemployment remains below the national average. Portland boasts a number of technology companies, leading some to nickname it ‘Silicon Forest.’ This makes the city an attractive option for tech companies and their workers who are increasingly looking for cheaper alternatives to the Bay Area.
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 Spending Index 2010-2021 (2010=1.0)
Construction Volume vs Labor - Annual Increase/Decrease Top Regional Projects Sorted by Construction Value
U.S. Construction Market | Market Snapshot Q4 - 2021
The Sacramento market managed sustained growth throughout 2021 and is expected to plateau in 2022. This is mainly due to the residential sector: in what has now become a familiar story, remote work and low interest rates have led people to remodel their homes or move out to the suburbs. This kept the market growing through the worst of the pandemic. Unlike in many other cities, however, the residential sector here is expected to remain strong in the next few years. The infrastructure sector is also expected to see a lot of growth as California pivots to green energy. Sacramento’s status as California’s capital city has insulated it from the pandemic and recession, thanks to the city’s many government employees. Furthermore, many of the other industries in the city can be done remotely. This has kept unemployment below the national average, while the construction industry has added workers in anticipation of a booming market. New variants of COVID-19 add a lot of uncertainty to the market, but the forecast for Sacramento is still bright.
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 Spending Index 2010-2021 (2010=1.0)
Construction Volume vs Labor - Annual Increase/Decrease Top Regional Projects Sorted by Construction Value
U.S. Construction Market | Market Snapshot Q4 - 2021
The future looks bright for San Diego. Thanks to a booming housing market, the city has managed to continue its growth from 2019 onwards. This trend is expected to hold in the new year, with the market predicted to grow by around 7%. Unlike most of California, high-density, multi-family projects make up a large share of the residential sector. This is also expected to continue into the next few years as well. San Diego has been adding construction workers to its workforce throughout the last year, and today there are more workers than at any point previously. There is expected to be quite a lot to do in the coming years, thanks to a growing residential sector and other sectors coming back online. As the pandemic wears on, consumers are increasingly accepting the risk and returning to pre-pandemic spending habits. This has contributed to a steady drop in the unemployment rate.
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 Spending Index 2010-2021 (2010=1.0)
Construction Volume vs Labor - Annual Increase/Decrease Top Regional Projects Sorted by Construction Value
San Francisco has stood as a global hub for business and technology since the California Gold Rush of the 1850s. That reputation still stands today, and these two sectors have kept people employed throughout the pandemic. This has, in turn, created consistent demand for new construction and kept thousands of workers employed. The market is expected to grow even more in the coming years, primarily driven by the residential sector. Thousands of people move to San Francisco each year to work in the city’s many start-ups and high-tech companies, all of whom will need somewhere to live. There are, however, a few clouds on the horizon. Living costs have spiraled well beyond what most people can afford, causing people to move further and further afield. The city simply cannot build fast enough to keep up with demand. In the short term, some companies are looking to relocate to cheaper cities and draw in workers remotely. This has the potential to put a dampener on the city’s growth and economy.
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
2022 is predicted to represent a return to form for the Seattle market. Total construction is expected to grow by almost 6% this year before contracting slightly in the coming years. Rather than any external factors, this is mostly due to residential projects that began due to the pandemic wrapping up. Residential construction still accounts for more than half of all volume here, as is common on the West Coast — workers are moving back to the city center to be closer to jobs downtown. Even with this expected decline, there is still much to do in Seattle’s construction industry. The city has added workers to its construction industry over the last year, and today there are more workers than ever before. Looking ahead, Seattle is expected to invest heavily in sustainability. The city pledged in 2010 to become carbon-neutral, and that date is fast approaching. In the pipeline are a tram network to get people out of their cars, new powerplants to end the city’s dependence on fossil fuels, and green buildings to take advantage of government tax credits.
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
