US construction spending ran at a seasonally adjusted annual rate of $2.19 trillion in September 2026, down 2.7% from a year earlier. The total hides a split that should shape every contractor’s marketing plan. Office construction, which includes data centers, rose 39.5% and power projects rose 12.1%. Residential improvement spending fell 18.0% and manufacturing fell 17.9%. Contractors chasing the growing segments are fishing in a fuller pond, while remodelers are fighting harder for fewer jobs.
We built the tables below from federal spending, business and labor data, homebuilder and contractor association surveys, and a national survey of social media use. Shares and per-business averages are our own calculations.
| Segment, September 2026 | Annual rate | Change vs September 2025 | Share of total (our calculation) |
|---|---|---|---|
| Total construction | $2,186.1 billion | -2.7% | 100% |
| Private residential | $848.8 billion | -8.9% | 38.8% |
| New single-family | $403.4 billion | -2.4% | 18.5% |
| New multifamily | $115.9 billion | -0.2% | 5.3% |
| Residential improvements (derived) | About $329.5 billion | -18.0% | 15.1% |
| Private nonresidential | $790.6 billion | +2.3% | 36.2% |
| Power | $171.7 billion | +12.1% | 7.9% |
| Manufacturing | $167.2 billion | -17.9% | 7.6% |
| Office, including data centers | $145.6 billion | +39.5% | 6.7% |
| Commercial | $115.9 billion | -4.4% | 5.3% |
| Public construction | $546.8 billion | +1.0% | 25.0% |
We derived the improvements figure by subtracting new single-family and new multifamily from total private residential spending. For the first nine months of 2026, construction spending totalled $1,649.6 billion, 2.9% below the same period of 2025.

Data Centers Inside the Office Numbers
Data center spending, counted inside the office category, rose 8.6% in September alone and 90.3% from a year earlier. It now makes up 12.2% of private nonresidential spending, which by our math is roughly $96 billion a year. Electrical, mechanical and concrete subcontractors with mission-critical experience have a market that nearly doubled in a year. For such a firm, case studies of finished data center work are the most persuasive material it can put on its website.
Public Owners as a Steady Client Base
Public construction ran at $546.8 billion a year in September 2026, a quarter of all spending, and grew 1.0% while private work shrank 3.8%. Educational building was the largest public category at $113.1 billion. Public work is won through bids, prequalification and relationships with agency staff, so the marketing looks different: an up-to-date capabilities statement, safety records, bonding capacity and a list of comparable public projects matter more than ads. For firms whose private residential pipeline is thinning, public and institutional bids are the most stable segment in the September data.
How Crowded the Contractor Market Is
Most construction businesses have no employees at all. In 2022 the US had 2,875,590 construction nonemployer businesses, mostly sole proprietors, with combined receipts of $238.0 billion. That is 9.6% of all US nonemployer businesses but 13.8% of their receipts. Construction one-person firms out-earn the average self-employed business. By our calculation, the average construction nonemployer took in about $82,800 that year.
| Construction nonemployer measure, 2022 | Figure |
|---|---|
| Construction nonemployer businesses | 2,875,590 |
| Share of all US nonemployer businesses | 9.6% |
| Combined receipts | $238.0 billion |
| Share of all nonemployer receipts | 13.8% |
| Average receipts per business (our calculation) | About $82,800 |
| State with the most | Texas, 376,379 |
Nearly three million one-person firms means a homeowner searching for a roofer, painter or handyman sees many names that look alike. Reviews, licence numbers, insurance proof and photos of finished jobs are what separate them. Our painting contractor marketing statistics show how much homeowners rely on reviews in one trade, and a newer trade example is in our guide to starting a pressure washing business in Florida.
Remodeling Demand Through Mid-2027
Homeowner improvement and repair spending stood at about $517 billion over the four quarters to June 30, 2026. A quarterly remodeling forecast projects $519 billion for the four quarters to June 30, 2027. Annual growth is expected to slow from 2.1% in the third quarter of 2026 to 0.5% by mid-2027, the third straight quarter of slower growth. Flat remodeling permits, flat building-product sales, fewer housing starts and low home sales are the reasons given.
The September spending data already shows the turn. Private residential improvements fell 13.0% from August and 18.0% from a year earlier. A remodeling market that grows at 0.5% is a share-taking market. Every new kitchen or bathroom job is likely won from another contractor, so a remodeler’s marketing budget should go first to the leads that are already shopping: past customers, referrals and search.
| Remodeling measure | Figure | Period |
|---|---|---|
| Homeowner improvement and repair spending | About $517 billion | Four quarters to June 30, 2026 |
| Projected spending | About $519 billion | Four quarters to June 30, 2027 |
| Projected annual growth | 2.1% slowing to 0.5% | Q3 2026 to Q2 2027 |
| Private residential improvements, month change | -13.0% | September 2026 |
| Private residential improvements, year change | -18.0% | September 2026 |

Homebuilder Confidence, Price Cuts and Incentives
Builder sentiment fell to 29 on the 100-point housing market index in October 2026, its weakest reading since June 2012. Some 43% of builders cut prices that month, the highest share since at least 2020, and the average cut was 6% for the seventh month in a row. Sixty-five percent used sales incentives. Prospective buyer traffic, the component most tied to marketing, dropped 5 points to 18.
| Housing market index, October 2026 | Reading | Change from September |
|---|---|---|
| Overall index | 29 | -3 |
| Current single-family sales | 33 | -2 |
| Sales expectations, next six months | 32 | -5 |
| Prospective buyer traffic | 18 | -5 |
| Builders cutting prices | 43% | Highest share since 2020 |
| Average price cut | 6% | Unchanged |
| Builders using incentives | 65% | Not compared |
A traffic score of 18 means builders are paying for each visitor. When two in three builders offer incentives, an incentive alone no longer sets a community apart. Builders who track cost per walk-in and cost per contract can see which channel pays, a method explained in our article on CAC payback period.
Recruitment Marketing in a Tight Construction Labour Market
For many contractors the hardest sale is a job offer. In a mid-2025 survey of 1,342 construction firms, 88% of firms that employ craft workers had craft openings. Among firms with openings, 83% said those jobs were as hard or harder to fill than a year before. Superintendents (81%), estimators (77%) and project managers (76%) topped the hard-to-fill salaried roles. Firms seeking AI specialists who found them hard to hire rose to 47%, up from 30%.
| Construction workforce measure, 2025 | Share of firms |
|---|---|
| Firms employing craft workers with craft openings | 88% |
| Craft openings as hard or harder to fill than a year ago | 83% |
| Projects delayed by worker shortages | 45% (66% in 2022) |
| Recruiting with social media or targeted digital ads | 55% |
| Recruiting through high school, college or CTE programs | 52% |
| Using search firms or professional employer organizations | 30% |
| Affected by immigration enforcement in the past six months | 28% |
| Planning to add headcount in the next 12 months | 62% |
More than half of firms already use social media or targeted digital ads to recruit, so the same channels that bring customers now carry job posts too. Hard-to-fill crafts were led by mechanics (79%), iron workers (78%), and electricians and crane operators (77% each). Shortages delayed projects at 45% of firms, down from 66% in 2022, which suggests recruiting has improved but has not closed the gap.
State Construction Job Growth to Target
Between September 2025 and September 2026, Louisiana added 18,800 construction jobs (+13.9%), North Carolina 15,900 (+5.7%), Ohio 15,100 (+5.8%), Texas 15,000 (+1.7%) and Illinois 14,300 (+6.0%). Georgia (-4,900), California (-4,800), Virginia (-3,200), New Jersey (-3,100) and Michigan (-3,000) lost the most. Growing states are where subcontractors and suppliers can expect the most new general contractor relationships, and where recruiting ads will face the most competition.
Social Platforms for Contractors and Builders
In a 2026 survey of 5,511 US adults, YouTube reached 84%, Facebook 70%, Instagram 51%, TikTok 37% and LinkedIn 31%. Nextdoor reached 18%, which matters more to a local contractor than its size suggests, because its users are grouped by the neighbourhood the contractor works in.
| Platform | US adults using it, 2026 | Construction use |
|---|---|---|
| YouTube | 84% | Project walk-throughs, before-and-after builds, how-we-work videos |
| 70% | Local homeowner ads, community groups, crew hiring posts | |
| 51% | Finished-project photos for remodelers and custom builders | |
| TikTok | 37% | Trade recruiting aimed at younger workers |
| 31% | Commercial bids, owner and architect relationships, salaried hiring | |
| Nextdoor | 18% | Neighbourhood referrals for trades and remodelers |
A small crew does not need all six. Pick one platform for customers and one for hiring. Post a finished job each week, with the town name in the caption, and answer every message within a day. That habit costs time more than cash, and it builds the photo record that homeowners look for before they call.
Review Rules That Apply to Contractors
The Federal Trade Commission’s rule on consumer reviews and testimonials, announced on August 14, 2024, bans fake reviews, including AI-written ones, and undisclosed reviews by owners or staff. It also bans rewards conditioned on a positive review and threats used to get bad reviews removed. Penalties reach $51,744 per violation. A contractor can still ask every customer for a review at the final walk-through, as long as nothing depends on the rating.
- Ask at handover. A QR code on the final invoice or yard sign that opens your review page costs nothing; our QR code generator makes one.
- Keep crews out of the stars. Employees and family members who post about the company must say they are connected to it.
- Answer bad reviews in public, politely. Threatening legal action to remove one falls under the ban.
A Worked Marketing Budget for a Remodeling Contractor
Take a hypothetical remodeler with $1.2 million in yearly revenue and an average job of $30,000, so about 40 jobs a year. If the market grows only 0.5%, holding 40 jobs means replacing every customer who does not come back. Suppose the firm sets marketing at 3% of revenue, or $36,000. Every input below is our own assumption, used only to show the math.
| Line | Assumption | Result |
|---|---|---|
| Annual revenue | $1,200,000 | 40 jobs at $30,000 |
| Marketing budget | 3% of revenue | $36,000 |
| Jobs from referrals and repeat customers | 20 jobs | Cost: follow-up and review requests |
| Jobs needed from paid channels | 20 jobs | $1,800 budget per won job |
| Close rate on qualified leads | 25% | 80 leads needed |
| Affordable cost per lead | $36,000 / 80 | $450 |
If referrals rise from 20 to 25 jobs, the paid-lead target drops to 60 and the affordable cost per lead rises to $600. In a slowing remodeling market, every extra referral job buys room in the ad budget. Run your own figures through our break-even calculator, send clean bills with the free invoice generator, and use a short script for lead calls such as those in our sales call script examples.
Contractors’ Questions About Construction Marketing Data
How Big Is the US Construction Market?
Construction spending ran at an annual rate of $2.19 trillion in September 2026. Private residential work made up $848.8 billion, private nonresidential $790.6 billion and public construction $546.8 billion.
Which Construction Sectors Are Growing Fastest?
Data centers grew 90.3% year on year in September 2026, office construction as a whole 39.5% and power 12.1%. Residential improvements and manufacturing each fell about 18%.
Is Remodeling Spending Going Up or Down?
Growth is slowing. Homeowner improvement spending is projected at about $519 billion by mid-2027, up from $517 billion, with annual growth falling to 0.5%.
Federal Data and Industry Surveys on Construction
Segment shares, the derived improvements figure, per-business receipts, the data center estimate and the budget example are Bizolaunch calculations from these sources.
- US Census Bureau: Monthly Construction Spending, September 2026 (released November 2, 2026)
- NAHB Eye on Housing: Private residential construction slips as remodeling weakens (November 2026)
- US Census Bureau: 2022 Nonemployer Statistics story on self-employment by sector
- Harvard Joint Center for Housing Studies: Leading Indicator of Remodeling Activity, 2026-Q2 release
- HousingWire: NAHB/Wells Fargo Housing Market Index, October 2026
- AGC of America and NCCER: 2025 Workforce Survey Analysis
- AGC of America: State construction employment, September 2026 (BLS data)
- Pew Research Center: Social Media Fact Sheet (2026 survey)
- Davis Wright Tremaine: FTC finalizes rule banning fake consumer reviews (August 2024)





