JLL Projects Slight Return to Positive for Construction Spending in 2026

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JLL, Chicago, released its 2026 U.S. Construction Perspective, finding that construction spending fell 4.7% in 2025. However, the firm projects 0.4% growth in 2026, marking a slight improvement.

Construction spending for 2024 totaled $2.15 trillion; in 2025 it was $2.04 trillion. JLL projects $2.05 trillion for 2026, and $2.14 trillion for 2027. (These figures are based on constant 2023 dollars.)

Some sectors have fared better than others. For example, data centers, utilities and infrastructure demonstrated resilience and growth, and creative and adaptive projects are in solid shape. Office-to-residential conversions nearly doubled in 2025, for example.  

As for ongoing challenges moving into 2026, JLL pointed to cost pressures, particularly those impacted by trade policy, and labor shortages.

“Success in 2026 will require big picture thinking with granular attention to local market details,” said Jaymie Gelino, COO and head of work dynamics accounts, project and development services, JLL. “Regional exposure to policy impacts varies significantly, creating new growth opportunities that aren’t immediately apparent under traditional market analysis. Even markets facing bigger impacts from ongoing uncertainty remain viable for projects that are matched to local conditions and risks, making granular market understanding essential for identifying the best opportunities.”