Policy Volatility Reshaping US Construction Landscape

Policy uncertainty has disrupted anticipated development patterns in the U.S. construction industry, creating challenges but also opportunities that vary widely across regions, sectors and projects. JLL’s 2025 Construction Perspective: U.S. Mid-year Update provides crucial insights on navigating this complex environment with a focused response that moves beyond reactivity.

“The construction industry is experiencing uncertainty that is affecting everything from material costs to labor availability,” said Louis Molinini, head of project and development services, Americas, JLL. “Despite these challenges, we’re seeing remarkable resilience in select sectors and regions that remain extremely active. It’s a local game that rewards strategic capital planning more than ever.”

While there are bright spots, the U.S. construction industry faces a challenging outlook with projects increasingly on hold, spending forecasts adjusted downward and contractors facing reductions in secured work. Forecasts anticipate real construction spending growth to hold at its lowest point since the pandemic through 2026. Limited activity now will complicate the industry’s capacity to ramp up quickly as uncertainty dissipates and conditions improve.

“Looking ahead to the next 12 months, strategic adaptation to challenges and flexibility will be key,” added Molinini. “Understanding that project exposures aren’t equal and local factors matter most for project outcomes is essential for success in today’s environment.”