Construction Market Report | Issue 1 | 2026

The U.S. construction industry enters 2026 with mixed signals as optimism holds despite growing market challenges. This Construction Market Report examines how declining interest rates, extended planning timelines, and ongoing tariff uncertainty are shaping project activity. While contractor confidence remains steady, project backlogs have softened and new starts continue to face delays as developers navigate economic and political uncertainty.

Strength in data centers and power-related projects continues to narrow market momentum, offsetting slower activity in other sectors. Labor shortages remain a critical pressure point, with construction unemployment near historic lows, intensifying competition for skilled workers. Material price escalation has moderated significantly compared to recent years, though volatility persists in steel, select commodities, and urban markets with concentrated demand.

Download the full Construction Market Report | Issue 1 | 2026 below.

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