Dive Brief:
- Texas leads the nation in commercial construction spending at nearly $90 billion annually, more than double any other state, while Arizona ranks No. 1 in per-capita spending, according to a report from Twisted Nail, a Waco, Texas-based construction aggregate supplier.
- The report identifies a commercial construction spending surge across the Sun Belt, fueled by federal incentives, manufacturing investments and population growth. Clean energy, semiconductor and advanced manufacturing projects account for much of that activity, according to the report.
- The findings underscore the contrast between populous states such as New York, California and Florida to fast-growing states in the South and Southwest, particularly in sectors benefiting from recent economic and policy shifts.
Dive Insight:
The report arrives as commercial construction spending continues to concentrate in states with strong growth in industrial, infrastructure and manufacturing projects.
Nationally, commercial construction has strongly rebounded since the depths of the pandemic in 2020 and 2021, reaching over $740 billion by early 2025. That’s about the highest level in more than two decades, according to the report.
Spending on manufacturing construction leads all categories, with inflation-adjusted spending jumping 135% since 2019 due to federal incentives for domestic production. Warehouse and automotive construction also posted sizable gains during that period, up 42.7% and 47.6%, respectively.
Health care and food-related construction are growing at a steadier pace, though office and lodging sectors remain below pre-pandemic levels, according to the report.
Top 15 states investing most in commercial construction
In addition to Texas leading all states in total commercial construction spending at $89.7 billion annually, it ranks third nationally in per-capita terms. North Dakota and Idaho also place high on a per-capita basis, driven by semiconductor, data center and other large-scale investments.
Meanwhile, populous states such as California, Florida and New York still report high overall spending but fell lower in per-capita rankings.
On the other hand, not all states posted growth over the past five years. Commercial construction spending in Hawaii and Louisiana, for example, dipped 52.1% and 33.8%, respectively.
