Construction Market Trends 2025: Navigating Challenges with Confidence
As we move into the second half of 2025, analysts remain cautiously optimistic about the U.S. construction market. According to the latest Census Bureau data, overall construction spending dipped by 0.4%, with residential construction experiencing a modest decline. However, if mortgage rates hold steady, a gradual rebound in single-family housing starts is expected by year-end.
Private non-residential construction has also seen a slight pullback, while public sector investment—particularly in infrastructure and data centers—continues to be a key driver of growth. Contractors are contending with an unsettled economic landscape shaped by tariff uncertainties, rising material costs, and persistent labor shortages. These pressures have led to project delays, cancellations, and more cautious hiring practices, although year-over-year layoffs have declined.
In this environment, strong risk management is more critical than ever. That’s where Cornerstone Complete comes in—helping your insureds better manage job site risks and protect their bottom line. Think of Property & Inland Marine for your non-residential projects such as road/highway, water/sewage, institutional, and commercial as well as your residential projects.
For over 35 years, Property & Inland Marine has stood by you and your customers, offering reliable coverage from cornerstone to completion. As the construction market evolves, we remain committed to supporting your success with tailored solutions that meet today’s challenges head-on.
Ready to strengthen your construction coverage strategy?
Contact your Property & Inland Marine representative today to learn how Cornerstone Complete can help you build with confidence—every step of the way.
