North America Building Construction Market By Type (Residential, Non-Residential), By Construction Type (New Construction, Renovation), By Application (Owned, Rental), By Country, By Competition, Forecast and Opportunities 2020-2030F

Market Overview

The North America Building Construction Market was valued at USD 2618.35 Billion in 2024 and is expected to reach USD 3867.98 Billion by 2030 with a CAGR of 6.72% during the forecast period. The North America Building Construction Market refers to the sector involved in the design, planning, development, and construction of various types of buildings, including residential, commercial, institutional, and industrial structures. This market encompasses activities from new building projects to renovations, restorations, and infrastructure improvements. In recent years, the market has experienced steady growth due to several driving factors. One of the primary contributors is the strong demand for residential construction, driven by a growing population, urbanization, and an increasing preference for modern living spaces.

The commercial construction sector is expanding due to the rise in business activities, retail development, and office space requirements. The increasing focus on sustainability and eco-friendly building practices is another key factor, with a growing emphasis on energy-efficient designs, green materials, and sustainable building certifications, such as LEED. Technological advancements in construction, such as modular building techniques, automation, and the use of Building Information Modeling (BIM), are also playing a pivotal role in driving the market forward by reducing costs, increasing efficiency, and improving construction timelines.

Significant investments in infrastructure projects, including transportation, healthcare, and education facilities, further contribute to the market’s rise. In the United States, the market is bolstered by government spending on infrastructure development and private sector investments in commercial real estate. In Canada and Mexico, ongoing industrialization and urban development are creating additional demand for building construction. The post-pandemic recovery, coupled with increased demand for residential properties and commercial spaces, is expected to fuel continued growth in the North America Building Construction Market. As these factors align with evolving market trends such  in ability and smart cities, the market is poised to see sustained growth in the coming years.

Key Market Drivers

Strong Demand for Residential Housing Due to Population Growth and Urbanization

One of the primary drivers for the growth of the North America Building Construction Market is the continuous demand for residential housing, fueled by population growth, urbanization, and shifting demographics. The North American region, particularly in urban areas of the United States, Canada, and Mexico, is experiencing significant population increases, creating an ongoing need for new residential properties. Younger generations, particularly Millennials and Generation Z, are entering the housing market, contributing to the demand for both single-family homes and multi-family units. As urban areas expand and cities grow, there is a heightened demand for affordable, high-quality housing options to accommodate the rising population.

Migration patterns, with people moving to urban centers in search of better job opportunities, access to amenities, and improved quality of life, further fuel the demand for housing. Real estate developers and homebuilders are responding to this demand by constructing new residential developments and modernizing existing housing stock to meet the evolving needs of the population. In cities like Austin, Texas, and Toronto, Ontario, the demand for new homes has led to rapid construction activities, as local authorities also promote new housing initiatives to keep pace with growth. As urbanization continues, cities are adopting mixed-use developments that combine residential, commercial, and recreational spaces to optimize available land and address the rising demand. According to the U.S. Census Bureau, the United States' population is expected to increase by approximately 10% from 2020 to 2030, leading to even greater demand for residential construction projects during this period.

Increased Investments in Commercial Real Estate Development

The North America Building Construction Market is significantly boosted by increased investments in commercial real estate development, particularly in retail, office, and industrial spaces. The post-pandemic recovery has seen businesses adjusting to new working models, with an increasing focus on new office spaces and commercial properties designed to accommodate evolving business needs, such as hybrid working environments. Despite the rise of remote working, there is a notable demand for modern office spaces that offer flexibility, advanced infrastructure, and high-tech features to support employee productivity and well-being.

The e-commerce boom has accelerated the demand for industrial spaces, such as warehouses and distribution centers, as companies expand their logistics networks to meet growing consumer demands. Retail real estate development continues to evolve, with developers focusing on creating mixed-use spaces that combine shopping, dining, and entertainment to enhance the consumer experience. Major cities in the United States and Canada, such as New York, Los Angeles, and Vancouver, are witnessing an influx of new commercial real estate projects. Additionally, Mexico's growing industrial and manufacturing sectors contribute to the rising demand for commercial spaces. These factors combined create a substantial market for new office buildings, warehouses, retail centers, and business parks, driving the growth of the commercial building construction sector. The U.S. population growth is projected to drive the need for 5.5 million new housing units by 2030, creating an additional demand for residential construction projects.

Government Infrastructure Spending and Public Sector Investments

Government infrastructure spending plays a critical role in driving growth in the North America Building Construction Market. As federal, state, and local governments increase investments in infrastructure projects, there is a heightened demand for construction services in the public sector. In the United States, the passage of large-scale infrastructure bills such as the Infrastructure Investment and Jobs Act (IIJA) has led to substantial investments in public infrastructure, including highways, bridges, airports, and public transportation systems. These projects require large-scale construction efforts, ranging from the building of new facilities to the renovation and modernization of existing structures. In Canada, the government is also investing heavily in sustainable infrastructure, such as public transit systems, healthcare facilities, and energy-efficient buildings.

Mexico, in alignment with its growing industrial sector, is focusing on infrastructure development to enhance connectivity and support urbanization. These government-funded construction projects not only create direct demand for construction services but also generate significant job opportunities, boosting the economy and indirectly fueling private sector growth. As governments continue to prioritize infrastructure development to support economic growth, the Building Construction Market will see sustained demand driven by public sector investments. The U.S. Infrastructure Investment and Jobs Act allocated $1.2 trillion for infrastructure spending over the next decade, driving an increase in public sector construction projects, particularly in roads, bridges, and water systems.

Rising Demand for Sustainable and Energy-Efficient Construction

Sustainability is becoming a central focus in the North America Building Construction Market, as both public and private sectors aim to reduce their environmental impact. This growing emphasis on sustainability is driving the demand for energy-efficient buildings that minimize resource consumption, lower carbon footprints, and contribute to environmental preservation. Green building materials, such as recycled steel, low-emission paints, and energy-efficient windows, are becoming the standard in construction projects across North America. Additionally, there is an increasing adoption of renewable energy sources, such as solar panels and geothermal heating, in new buildings, reducing dependency on traditional energy sources. The popularity of certifications such as LEED (Leadership in Energy and Environmental Design) and BREEAM (Building Research Establishment Environmental Assessment Method) has risen as developers seek to meet consumer and regulatory demands for greener buildings.

The growing trend toward sustainable construction is being driven by both consumer preference for eco-friendly living and government policies aimed at reducing energy consumption in buildings. In the United States, Canada, and Mexico, local governments have introduced building codes and incentives to promote green building practices, further fueling market demand. The increasing awareness of climate change and its environmental effects also contributes to the rising preference for sustainable construction solutions in the residential, commercial, and industrial sectors. The value of the green building market in the United States is anticipated to increase by more than 10% annually, with significant growth in both new construction projects and retrofitting of existing buildings to meet sustainability standards. This trend is supported by increasing investments in energy-efficient technologies and growing regulatory pressure for environmentally responsible building practices.

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Key Market Challenges

Labor Shortages and Skilled Workforce Deficiencies

A significant challenge facing the North America Building Construction Market is the ongoing shortage of skilled labor. Over the past few decades, the construction industry has struggled with a decline in the number of skilled tradespeople, including electricians, plumbers, carpenters, and heavy equipment operators. The issue has been exacerbated by the aging workforce, with many experienced workers retiring and not enough younger workers entering the industry to replace them. The lack of skilled labor not only results in delays and increased costs but also impacts the quality and safety of construction projects. With the rising demand for new construction driven by growing urbanization, infrastructure development, and real estate investments, the pressure on an already strained labor force intensifies. In addition, the COVID-19 pandemic disrupted construction activities further, causing many workers to exit the industry either due to health concerns or because of shifts to alternative employment opportunities in other sectors that offered better pay and conditions. This shortage has led to a reliance on temporary and contract labor, which can be inconsistent and may not always meet the required standards. 

The increasing adoption of new technologies, such as automated construction systems and smart building techniques, demands higher levels of technical expertise, deepening the gap between industry needs and available skills. To address this challenge, the North America Building Construction Market needs to focus on creating more robust training programs, expanding apprenticeships, and developing initiatives to attract younger workers to the trades. Investment in education and training will be crucial for bridging the skills gap, ensuring a sustainable and efficient labor force for future construction projects.

Rising Material Costs and Supply Chain Disruptions

Another significant challenge affecting the North America Building Construction Market is the rising costs of construction materials and the disruptions in supply chains. In recent years, the market has seen sharp increases in the price of essential construction materials, such as steel, lumber, concrete, and copper, driven by a combination of global supply chain issues, rising demand, and geopolitical factors. These price hikes have been particularly evident in the aftermath of the COVID-19 pandemic, which caused production slowdowns and bottlenecks in the global supply chains. For example, the price of lumber surged to unprecedented levels, causing significant financial strain on both residential and commercial construction projects. Similarly, steel shortages due to supply chain constraints, combined with tariffs and trade restrictions, further inflated costs for developers, making it harder to stay within budget. The unpredictability of material prices can lead to project delays, especially when price increases occur midway through construction, forcing contractors to adjust their budgets or face significant financial losses. 

Fluctuating material prices hinder the ability to accurately forecast costs, which makes it difficult for developers, contractors, and clients to plan long-term projects effectively. The challenge is compounded by a limited availability of raw materials, exacerbated by disruptions in the transportation sector, such as truck driver shortages and container port congestion. In the face of these challenges, stakeholders in the Building Construction Market must explore alternative sourcing strategies, implement cost control measures, and leverage technology for supply chain optimization. Efforts to increase local production of key construction materials could help mitigate the impact of global supply chain volatility and ensure greater price stability moving forward.

Regulatory Compliance and Environmental Sustainability Pressures

Regulatory compliance and the growing pressure to adhere to environmental sustainability standards present another significant challenge to the North America Building Construction Market. As governments across North America place increasing emphasis on sustainability, energy efficiency, and carbon footprint reduction, the construction industry must navigate an increasingly complex regulatory landscape. In the United States, Canada, and Mexico, environmental regulations related to building design, construction materials, and waste management are becoming more stringent. Builders and developers are now required to incorporate sustainable practices into their projects, which includes meeting specific energy-efficiency standards, using environmentally friendly materials, and implementing green technologies. For example, in many cities, new buildings must meet certain environmental certifications, such as LEED (Leadership in Energy and Environmental Design), which involves adhering to strict guidelines on energy consumption, waste reduction, and sustainable materials. These regulations, while beneficial in the long run, can impose additional costs and time delays for construction projects, especially for developers who are unprepared to meet such standards.

The demand for energy-efficient buildings is growing, but achieving the necessary level of sustainability often requires the use of more expensive materials, technologies, and techniques, adding to project costs. The construction industry also faces increasing pressure to reduce its own environmental impact, as building projects can generate substantial waste and contribute to greenhouse gas emissions. Balancing regulatory compliance with cost-effectiveness, project timelines, and stakeholder expectations is becoming a delicate task. To mitigate this challenge, the industry must invest in research and development to innovate more sustainable building materials and construction techniques. Close collaboration with regulatory bodies and adherence to industry standards can help construction firms remain compliant while also meeting environmental objectives. However, the ongoing evolution of environmental policies means that the construction sector must remain adaptable, prepared to implement new regulations as they arise, and continuously improve its environmental performance to maintain its role in the sustainable development of the region.

Key Market Trends

Rise of Sustainable and Green Building Practices

Sustainability has become a driving force in the North America Building Construction Market, influencing the design, materials, and techniques used in both new construction and renovations. With growing concerns about climate change and the environmental impact of construction, developers and builders are increasingly adopting green building practices. These include the use of energy-efficient materials, eco-friendly construction methods, and designs aimed at reducing the carbon footprint of buildings. Renewable energy sources such as solar panels, wind energy systems, and geothermal heating are becoming standard features in new buildings, helping to reduce long-term operational costs while meeting stringent energy regulations. 

The demand for certifications like Leadership in Energy and Environmental Design (LEED) and Building Research Establishment Environmental Assessment Method (BREEAM) has been steadily rising, pushing construction companies to integrate sustainable practices in every phase of a building’s lifecycle. Green building techniques not only help reduce environmental impact but also improve energy efficiency, ensuring that the buildings operate in a more cost-effective and environmentally friendly manner. With government incentives and building codes becoming more stringent, the market for sustainable buildings is projected to grow significantly. In cities like Vancouver and San Francisco, local regulations are encouraging the construction of zero-emission buildings, further driving the trend. As the focus on sustainability continues to increase, the North America Building Construction Market is expected to witness further growth in green building solutions, including energy-efficient technologies, sustainable materials, and low-impact construction practices.

Increasing Demand for Smart Buildings and Infrastructure

The North America Building Construction Market is witnessing a growing demand for smart buildings that integrate advanced technologies to enhance operational efficiency, security, and user experience. These buildings use the Internet of Things (IoT) and smart systems to monitor and control various aspects, such as lighting, HVAC (heating, ventilation, and air conditioning), security, and energy management. The rise of smart cities, coupled with increasing consumer interest in home automation, is fueling the demand for smart residential, commercial, and industrial buildings. For commercial properties, smart building technologies improve energy efficiency, enhance occupant comfort, and reduce long-term operational costs. For instance, automated systems adjust lighting and temperature based on occupancy or time of day, leading to energy savings. 

Smart buildings can optimize the use of space through data collection, leading to more efficient management of office or retail spaces. In the residential sector, consumers are increasingly looking for homes equipped with automation systems that provide convenience, energy efficiency, and enhanced security. As more cities and businesses invest in smart infrastructure, including intelligent transportation systems and energy grids, the demand for smart buildings is expected to rise. This trend is also being driven by regulations that push for energy-efficient solutions and the integration of renewable energy sources. The continued development of smart building technologies will reshape the North American construction market, creating new opportunities for developers, technology providers, and service companies involved in the construction and maintenance of such buildings.

Labor Shortages and Workforce Challenges

The North America Building Construction Market faces significant challenges related to labor shortages and the need for a skilled workforce. The construction industry has long been plagued by a shortage of skilled workers, and this issue has become more pronounced in recent years due to an aging workforce, lack of skilled labor training programs, and competition from other sectors that offer more attractive wages and benefits. The U.S. construction industry alone is facing a projected shortage of nearly 2 million workers by 2026, which is putting pressure on contractors and developers to find and retain qualified workers. The shortage is particularly acute in specialized trades such as electricians, carpenters, plumbers, and ironworkers, which are essential for completing both residential and commercial projects. 

The ongoing challenges related to worker safety and well-being, especially in the wake of the COVID-19 pandemic, have further exacerbated labor shortages, as many experienced workers have retired early or opted for safer and less physically demanding jobs. With the growing demand for new construction and infrastructure development, the labor gap is expected to widen unless the industry takes proactive steps to attract and retain a younger, more diverse workforce. The adoption of advanced construction technologies, such as robotics, drones, and automated equipment, can help mitigate labor shortages to some extent by reducing the reliance on manual labor. However, these technologies require skilled workers to operate them, further underscoring the need for investment in workforce training and development. If these challenges are not addressed, the construction industry could face delays, cost overruns, and quality issues in future projects.

Key Market Trends Segmental Insights

Type Insights

Residential segment dominated in the North America Building Construction Market in 2024 and maintain its leadership throughout the forecast period. This dominance is primarily driven by strong demand for new housing, fueled by factors such as population growth, urbanization, and the increasing need for modern and affordable homes. The ongoing housing shortage in many parts of the United States, particularly in high-demand metropolitan areas, has led to a surge in residential construction projects, including single-family homes, multi-family units, and apartments.

The growing trend of millennials entering the housing market, coupled with the rise of remote work, has further stimulated demand for residential spaces. Despite challenges like rising material costs and interest rate hikes, the residential sector continues to benefit from favorable government policies, tax incentives for homebuyers, and a continued focus on sustainable, energy-efficient housing. The non-residential segment, although substantial, is seeing slower growth in comparison, due to the ongoing effects of economic uncertainty and shifts in work patterns, such as the reduction in office space demand as remote and hybrid working models become more common. While sectors like healthcare, education, and industrial construction continue to see investments, the residential segment's robust performance driven by demographic trends and housing demands ensures its dominance in the North America Building Construction Market. As urban populations grow and the demand for housing increases, the residential construction sector is expected to maintain its lead and continue to be the largest driver of growth in the North American market throughout the forecast period. 

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Country Insights

The United States dominated the North America Building Construction Market in 2024 and maintain its leadership throughout the forecast period. This dominance is largely attributed to the country's significant demand across both residential and non-residential construction sectors. The U.S. remains the largest market due to its large and diverse population, rapid urbanization, and ongoing infrastructure development projects. In the residential sector, the U.S. is seeing a strong surge in housing demand, driven by population growth, the migration of people to urban areas, and an increasing need for affordable housing solutions. In response, there has been substantial investment in both single-family homes and multi-family dwellings, with a particular focus on sustainable, energy-efficient buildings.

On the non-residential side, the United States is witnessing robust growth in commercial real estate, including office buildings, retail spaces, industrial facilities, and healthcare infrastructure. The country’s significant public and private sector investments in infrastructure, including transportation networks, utilities, and energy projects, further contribute to the market's expansion. The government’s focus on large-scale infrastructure development, such as through initiatives like the infrastructure investment and jobs act, is expected to boost construction activity in the coming years. The U.S. government's commitment to urban renewal, coupled with a high level of private investment, makes the country a key player in North America's construction industry. Given the strong economic foundation, demographic trends, and continuous investments in infrastructure, the United States is projected to remain the leading force in the North America Building Construction Market throughout the forecast period.

Recent Developments

• In March 2025, Fluor Corporation announced the successful completion and startup of Tengizchevroil’s (TCO) Future Growth Project (FGP) at the Tengiz oil field in Kazakhstan, led by a Fluor-led joint venture. The venture, which includes Worley, Kazakh Institute of Oil and Gas, and KazGiproNefteTrans Engineering Company, has been providing a range of engineering, procurement, construction, operations, and maintenance services for TCO since 2011. This milestone marks a significant achievement in Fluor’s longstanding partnership with TCO in the region.
• In December 2024, Fluor Corporation announced the signing of a Front-End Engineering and Design (FEED) contract with Heidelberg Materials for its GeZero project in Geseke, Germany. The project aims to integrate an industrial-scale carbon capture and storage solution into Heidelberg’s cement production facility. Fluor will recognize the undisclosed contract value in the fourth quarter of 2024, marking a key step in advancing sustainable practices within the cement industry.
• In November 2024, Texas LNG Brownsville LLC, a subsidiary of Glenfarne Energy Transition, selected Kiewit to lead the engineering, procurement, and construction (EPC) of its LNG export terminal in Port of Brownsville, Texas, under a lump-sum turnkey (LSTK) agreement. Kiewit will also assist with pre-final investment decision (FID) engineering. Glenfarne CEO Brendan Duval praised Kiewit’s expertise, while Kiewit’s Eric Gutierrez emphasized their experience in delivering complex LNG projects, highlighting the importance of the partnership for regional energy infrastructure development.
• In September 2024, DPR Construction, a leading technical builder, was recognized by U.S. News & World Report as one of the 2024-2025 Best Companies to Work For in both the Private Companies and Engineering and Construction categories. CEO George Pfeffer emphasized that DPR's success is built on a commitment to its teams, offering growth opportunities, competitive compensation, and comprehensive benefits. The company prioritizes mental health, safety, and a culture of belonging, while investing in employee wellbeing and creating an exceptional work experience for all staff, including those in skilled trades.

Key Market Players

• Kiewit Corporation
• Bechtel Corporation 
• Fluor Corporation
• HOCHTIEF Aktiengesellschaft
• Jacobs Solutions Inc.
•  Lendlease Corporation Limited
• Balfour Beatty plc
• DPR Construction

Report Scope:

In this report, the North America Building Construction Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

• North America Building Construction Market, By Type:

o   Residential

o   Non-Residential    

• North America Building Construction Market, By Construction Type:

o   New Construction

o   Renovation   

• North America Building Construction Market, By Application:

o   Owned

o   Rental      

• North America Building Construction Market, By Country:

o   United States

o   Canada

o   Mexico

Competitive Landscape

Company Profiles: Detailed analysis of the major companies present in the North America Building Construction Market.

Available Customizations:

North America Building Construction Market report with the given market data, TechSci Research offers customizations according to a company's specific needs. The following customization options are available for the report:

Company Information

• Detailed analysis and profiling of additional market players (up to five).

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