Market Snapshot: Construction Spending

Market Snapshot: Construction Spending

Construction spending (not adjusted for inflation) is trending towards a 7% increase from last year’s activity based on September’s seasonally adjusted annual rate, as reported by the U.S. Census Bureau. At the end of the second quarter, the data pointed to a slightly lower year-over-year increase, around 6%.

At the end of the third quarter, data center construction continued to have the highest growth (48%) compared to the same month last year. Public safety (33%) and manufacturing (20%) were next. 

We also looked at how compound annual growth rates (CAGR) for different construction project categories may shift when comparing the 2020 to 2024 period to growth rates between 2019 and 2023. This analysis showed data center, manufacturing, amusement & recreation, religious, and lodging (still negative) having significant growth acceleration. Commercial, multifamily, public safety, and communication are also expanding, but at a much slower pace. Private office, which had a negative 2019 to 2023 CAGR around -1%, has an estimated -5.5% CAGR between 2020 and 2024.

Construction Spending Percentage Change – September 2024 vs. September 2023
(Seasonally Adjusted Annual Rate)

To learn more about market intelligence data and research services offered by Morrissey Goodale, schedule an intro call with Rafael Barbosa.