According to JLL’s 2025 U.S. Construction Outlook, the construction industry experienced positive signals in 2024 due to falling interest rates and stable material costs. However, recent reports from both JLL and Cushman & Wakefield have shown a shift in the current and near-term outlook for the industry, with increasing prices and ongoing uncertainty.
One of the main factors contributing to this change is tariffs imposed by the Trump administration in an effort to boost the economy. However, without a clear policy in place, there has been a rise in uncertainty which has led to higher material costs as companies anticipate potential increases.
Labor issues also continue to be a major concern for contractors as shortages of skilled workers persist. The aging workforce combined with stricter immigration policies could further exacerbate these challenges.
To navigate these headwinds impacting construction activity, commercial real estate decision-makers are advised by JLL analysts to prioritize capital planning, consider alternative sourcing strategies,and leverage insights from recent challenges.
