Building Anew

2025 construction trends

There will be some headwinds to go against, but 2025 should bring growth in the construction industry. With population growth and increased urbanization, there is need for more housing in cities, and the permanence of remote work increasing demand away from city centers, there’s need in suburban and rural areas as well. In the commercial sector, the growing need for data centers will drive investment, as will expansion in healthcare and educational facilities.

More Affordable

The Federal Reserve has begun cutting interest rates, making it easier to borrow and invest in new projects. There seem to be further cuts on the horizon as long as inflation stays near the Fed’s target of 2%.

“Impacts won’t be felt immediately, but the Fed’s initial 50-basis-point cut on September 18 should increase demand for more projects,” Clare Wydeven, regional vice president of construction at The Hartford, said. “As the likely start of broader easing, we should see more construction activity.”

Projects aimed at increasing the affordable housing supply will drive building, with the Congressional Budget Office forecasting $1.68 million in housing starts in the U.S. in 2025.

“In CBO’s projections for the near term, high mortgage rates restrain construction activity. As mortgage rates begin to fall, pent-up demand — created by the desire for more living space during and after the coronavirus pandemic — stimulates more housing starts,” the forecast states.

Headwinds to Navigate

Despite that, there remain obstacles that might keep buildings from going up as fast as demand. Covid-related supply chain disruptions have not wholly gone away. Raw materials from overseas are still difficult to reliably come by, and they remain expensive. That has shifted the way builders go about planning.

“One of the lasting lessons of the pandemic-era supply chain crisis is how critical investments in supply chain procedure will be in the future,” Chris O’Hala, director of construction and energy risk engineering at The Hartford, said. “In addition to tracking and pricing, leaders will need to keep a much closer eye on how geopolitical, climate-driven, and cyber events can potentially derail deliveries that put projects at risk.”

While hiring has been strong, the long-lasting labor shortage in construction remains, and 40% of employees in the industry are on track to retire by 2035. Automation can offset some of that by performing repetitive tasks. But they can’t replace leadership and institutional knowledge. Mentorship programs and clear opportunities for advancement can attract and foster talent, as can upskilling programs for existing employees and outreach to promote trades. The National Association of Home Builders has a series of promotional videos that can help firms showcase the highlights of well-paying careers in construction with no student debt.

Getting Smart

As for the amenities in the new buildings raised, 2025 will see smart integration firmly established not as a nice-to-have but a must-have. Advanced IoT and AI systems will control lighting, heating, and security to maximize energy efficiency and peace of mind.

Technology won’t just be key in the buildings themselves, but in managing the design and construction of them. VR and BIM services like those offered by Analogue will take strong hold in the design phase, with builders modelling and testing models before starting the physical building. Construction drones from Propeller and other manufacturers will provide accurate, comprehensive site surveys before foundations are laid. Once shovels hit dirt, advanced applications like those developed by Built on Vision will keep things on time and on budget.

“Instead of a contractor needing five applications to run their schedule, we’re looking for them to do it all out of one,” Built On Vision co-founder and CEO Michael Saddik told BOSS.

Living Spaces

New ideas in design extend beyond integration technology in new builds. Homes will be designed to accommodate owners as they age, with level entries, walk-in showers, and accessibility ramps featuring prominently. Many homeowners would like to stay in their houses longer but have to move into facilities that are better equipped to accommodate their mobility needs. New home designs will allow them to remain in the comfort of their own homes longer without sacrificing style.

“With the age of mortality growing ever higher, aging in place is a big conversation point when speaking about appliances and fixtures in residential spaces,” Jenni Steele, vice president of marketing at Niagara, wrote for gb&dPRO. “ADA compliance is extremely important for individuals investing in homes and living spaces because they understand that they will be aging along with the resident.”

Especially in warmer climates, spaces that blend the interior and exterior spaces of homes will grow in popularity. Think atriums with living walls that can open to the outside on nice days and living areas that extend into a patio for a seamless entertaining atmosphere.

“The connection to nature has been shown to reduce stress, boost mood, and improve overall well-being,” Wolfe-Rizor Interiors points out. “When you create an indoor-outdoor living space, you’re essentially inviting nature into your daily life.”

That’s a breath of fresh air.