CHICAGO, Illinois—JLL Project and Development Services released its 2026 U.S. Construction Perspective. The report highlighted how policy-driven market dynamics are creating regional opportunities and competitive advantages across the construction landscape.
“The construction industry is navigating an unprecedented convergence of policy impacts that are fundamentally reshaping market dynamics,” said Louis Molinini, head of project and development services for the Americas, JLL. “While much of 2025 was at a standstill due to uncertainty, we now have directional clarity that enables strategic positioning for organizations ready to move beyond reactive approaches.”
Construction spending fell 4.7 percent in 2025, illustrating the impact of market uncertainty on industry performance. While JLL projected a return to positive territory with 0.4 percent growth in 2026, this near-flat trajectory underscored ongoing industry pressures and the need for localized strategies and adaptive project delivery.
JLL found that material cost pressures were expected to intensify throughout 2026. Policy instability and reduced construction demand delayed trade impacts from materializing, creating conditions where cost increases will accelerate with activity.
“Success in 2026 will require big picture thinking with granular attention to local market details,” said Jaymie Gelino, chief operating officer 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.”
“Planning for future activity must account for structural workforce constraints now, as market challenges may compound when construction activity accelerates,” said Andrew Volz, research manager, project and development services, JLL. “The intersection of trade policy, immigration enforcement, and local economic conditions requires a wholly integrated approach to accurately assess risks.”