Commercial construction spending in the U.S. continues to concentrate in fast-growing regions, with Texas leading the nation in total spending and Sun Belt states dominating overall growth, according to a new report from Twisted Nail.
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The report found that Texas accounts for nearly $90 billion in annual commercial construction spending — more than double that of any other state — underscoring its position as the country’s top market for large-scale development.
Meanwhile, Arizona ranked No. 1 in per-capita commercial construction spending, followed by North Dakota and Texas. The rankings reflect a broader shift toward high-growth states benefiting from population increases, manufacturing expansion and federal incentives.
The surge in construction activity across the South and Southwest is largely tied to investments in clean energy, semiconductor production and advanced manufacturing projects.
These sectors have driven a strong rebound in commercial construction nationwide since the downturn during the COVID-19 pandemic. By early 2025, total U.S. commercial construction spending exceeded $740 billion, reaching one of its highest levels in more than two decades, according to the report.
Manufacturing construction has emerged as the leading category, with inflation-adjusted spending rising 135% since 2019. The increase has been fueled in part by federal policies aimed at boosting domestic production capacity.
Other sectors have also posted notable gains. Warehouse construction increased 42.7% during the same period, while automotive construction climbed 47.6%, reflecting sustained demand for logistics and industrial facilities.
Despite maintaining high overall spending levels, more populous states such as California, Florida and New York ranked lower on a per-capita basis, highlighting the difference between total investment and relative spending intensity.
In contrast, smaller and rapidly growing states like Idaho have climbed the rankings due to major investments in semiconductors, data centers and other large-scale developments.
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Not all states have benefited equally from the recent construction boom. Spending declined sharply in Hawaii and Louisiana over the past five years, falling 52.1% and 33.8%, respectively.
Sector-specific trends also reveal uneven recovery. While health care and food-related construction have grown steadily, office and lodging construction remain below pre-pandemic levels, reflecting ongoing shifts in workplace and travel demand.
The findings highlight a growing divide in the construction industry, with high-growth regions capturing a disproportionate share of investment. As economic and policy factors continue to shape development patterns, states with strong industrial pipelines and population growth are expected to remain at the forefront of commercial construction activity.
Originally reported by Sebastian Obando, Senior Reporter in Construction Dive.
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