Policy uncertainty has disrupted expected development patterns in the U.S. construction industry, with projects increasingly on hold, spending forecasts adjusted downward and contractors facing reductions in secured work.
According to JLL’s 2025 Construction Perspective: U.S. Mid-year Update, current forecasts anticipate real construction spending growth to hold at its lowest point since the pandemic through 2026. Public investments continue to disproportionately reshape both the economy and construction landscape, with private investment responding unevenly as investors assess changing priorities and funding support. With federal funding being redirected, data centers, nevertheless, continue to expand at an incredible pace, looking to more than double real spending from 2023 to 2026.
In addition, the cost environment has dramatically shifted in the past six months, transitioning from modest contraction to potentially one of the largest increases in recent h
