KEY POINTS
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ConstructConnect US forecast data shows Northeast nonresidential construction starts rising from $93.3 billion in 2025 to $102.4 billion in 2027
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The construction starts forecast suggests resilience fueled by infrastructure investment, commercial redevelopment, and incremental gains across select support sectors.
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Civil construction anchors growth and is propelled by major bridge replacements, transit upgrades, and water infrastructure renewal, supported by federal and state funding.
The Northeast’s nonresidential construction market is in the midst of expansion. In 2025, total construction starts are projected to reach $93.3 billion by years end. By 2027, regional activity is expected to total $102.4 billion, marking a 9.8% increase over the two year period.
This upward trajectory underscores the Northeast’s position as a resilient and adaptive market within the broader US construction landscape. The region’s growth is supported by heavy investment in infrastructure, a notable rebound in commercial activity, and incremental gains in select support sectors.
Civil Construction Anchors Regional Expansion
Civil construction continues to lead the Northeast’s growth story. In 2025, starts are expected to hit $42.3 billion, accounting for 45.3% of all regional construction starts. This figure is a significant step up from $36.2 billion in 2024, reflecting a 16.8% year-over-year increase.
By 2027, ConstructConnect forecasts civil starts to reach $49.2 billion, representing a 16.4% gain over two years. Major bridge replacements, transit system upgrades, and water infrastructure improvements are central drivers, propelled by ongoing federal and state investment.
The result is a stable foundation for the regional market, reinforcing the long-term trend toward sustained infrastructure renewal and modernization.
Commercial Construction Rebounds Sharply
The commercial construction sector is expected to deliver the Northeast’s fastest growth rate over the forecast period. Commercial starts in 2025 are set to reach $6.8 billion, a rebound from $6.2 billion in 2024. This momentum is projected to carry the sector to $13.0 billion in both 2026 and 2027, an 89.4% expansion from 2025 levels.
Demand for updated office environments, retail buildouts, and mixed-use developments is strong throughout the region as urban centers navigate new patterns of work and commerce. Renewed private-sector spending and strategic redevelopment initiatives add support to this resurgence.
Industrial Construction Forecast for Sustained and Strategic Growth
Industrial construction demonstrates steady gains in the Northeast, with 2025 starts forecast at $6.5 billion, up 20% from $5.4 billion in 2024. The trend continues with $7.7 billion in starts for 2026 and a further increase to $8.4 billion in 2027. This sector accounts for 7.0% of total market activity in 2025, rising to 8.2% by 2027.
Driven by new manufacturing plants, logistics hubs, and high-tech production facilities, industrial construction reflects ongoing efforts to reinforce regional supply chains and advance production capacity.
Projects are increasingly technology and automation-focused, aligning with shifts toward advanced manufacturing and distribution efficiency.
Education Construction Market Correction but Ongoing Volume
The education sector is entering a period of contraction after intense activity in previous years. Starts are set to peak at $18.7 billion in 2025 before declining to $13.4 billion by 2027, a 28.3% drop.
Government Construction Tapers Investment
Government sector construction starts will decrease from $4.9 billion in 2025 to $3.5 billion in 2027, a 28.6% contraction. This adjustment reflects the conclusion of stimulus-driven projects and a tightening of state and municipal capital budgets as some funding is phased out.
Even as its share of total activity slides from 5.3% to 3.4%, government construction will remain critical for improvements to public safety buildings, emergency management facilities, and courthouses throughout the region.
Broad Trends and Outlook
While the Northeast faces contractions in educational and government sectors, these are offset by broad-based civil and industrial growth. Total construction starts are projected to hit $99.3 billion in 2026 and top the $100 billion mark by 2027, underscoring continued resilience.
The Northeast’s construction outlook is defined by proactive infrastructure investment, robust commercial redevelopment, and steadily advancing industrial projects. These dynamics signal a healthy, expanding market that is well-poised for continued competitiveness and economic growth through 2027.
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