JLL Project and Development Services (PDS) has released its 2026 U.S. Construction Perspective, highlighting how policy-driven market dynamics are creating regional opportunities and competitive advantages across the construction sector.
Construction spending fell 4.7% in 2025 due to market uncertainty, with modest growth of 0.4% projected for 2026. The near-flat trajectory underscores ongoing pressures and the need for localized strategies and adaptive project delivery.
Material costs are expected to rise throughout 2026 as delayed trade impacts from reduced demand begin to materialize. Meanwhile, workforce constraints — exacerbated by current immigration policies — could become acute as construction activity accelerates, disrupting traditional employment growth patterns.
“Success in 2026 will require big-picture thinking combined with local market insight,” said Jaymie Gelino, COO of JLL Project and Development Services. “Even markets facing uncertainty can be viable if projects are aligned with local conditions and risks.”
Gateway cities such as New York face both risks and opportunities due to their size, diverse populations and economic connections. Early contractor partnerships, flexible risk-sharing and tailored procurement strategies can help organizations navigate policy impacts while leveraging local advantages.
Strategic planning that accounts for workforce limitations, trade policy, and regional economic conditions will be critical as construction investment activity picks up. JLL emphasizes that granular, market-specific analysis is essential for identifying the best project opportunities in 2026.
