U.S. construction spending is forecast to reach $2.85 trillion by 2031, up from $2.22 trillion in 2026, according to a new report from Merlo America and BiltData.ai.
California, Texas, Florida, New York and New Jersey are projected to account for about 42% of total construction spending by 2031. The New York-Newark-Jersey City metropolitan area is expected to lead the nation with $230 billion in spending.
Data center development is also expected to drive construction activity. The report projects the top 12 metropolitan markets will account for nearly 73% of U.S. data center capacity by 2031, with Dallas-Fort Worth, Washington, D.C., Chicago and Phoenix among the major markets.
By 2031, construction spending is projected to reach $1.026 trillion in residential construction, $741 billion in commercial construction, $684 billion in industrial construction, including manufacturing and data centers, and $399 billion in infrastructure.
The report combines construction spending forecasts with economic, employment, data center and agricultural data to identify markets where construction activity is expected to grow.
