Project stress picked back up in March as rising uncertainty led more developers to abandon projects, according to the latest data from Cincinnati-based ConstructConnect.
The Project Stress Index, a measure of construction projects that have been paused, abandoned or have a delayed bid date, increased 1.1% in March. That marks a 13.7% increase over 2021 levels, the benchmark year for the index, according to ConstructConnect.
The uptick in overall stress over the past month occurred despite an 8% drop in on-hold activity and a 0.7% dip in delayed bids. A 9.5% jump in project abandonments erased most of that progress, said Michael Guckes, chief economist at ConstructConnect.
“The early weeks and months of 2025 have seen an unwelcome surge in project abandonment activity,” Guckes told Construction Dive. “The level of abandonments in both sectors is presently above, and well above in the case of the private sector, historic averages.”
That rise echoes patterns seen in early 2024, when fears around high interest rates and valuations led some developers to pull back. Guckes added the industry now faces a similar level of uncertainty, particularly if input prices continue to jump this year.
“While today’s environment is still one of high interest rates, other concerns related to the stability of the economy in the coming quarters and even years may once again be spooking owners and developers who are now abandoning projects,” said Guckes. “This may be especially true of projects with modest return on investment expectations.”
Private projects remain the main pressure point, according to the data.
The number of private projects placed on hold more than doubled over the past 12 months, up 110% compared to March 2024. Although private sector abandonments fell slightly since last March, by 3.8%, the overall level still remains well above historical averages, said Guckes.
The turmoil that has resulted from President Donald Trump’s tariffs is likely having an impact on construction projects, said Guckes.
“Although private projects make up only a small portion of the total number of projects on hold, we have definitely seen a bump in this figure since early February,” said Guckes. “This does not seem to be accidental as the timing of it seems to correspond with the volatility to industry generated by recent governmental policy and the renewed retreat of outlook surveys including the important consumer sentiment survey.”
The public sector, on the other hand, showed some stabilization. Projects put on hold dropped 22.2% since last March, while abandonments dropped 16.3% compared to the same period last year.
During March, there were nearly two private sector abandonments for every abandoned public project, according to the report.
