The U.S. construction industry in 2025 faces growing uncertainty amid shifting trade policies, high interest rates and stricter immigration enforcement. New tariffs on steel and aluminum have increased material costs, delaying projects and tightening budgets, while labor shortages continue to challenge contractors nationwide. Inflation has further eroded wage gains, and elevated borrowing costs are cooling new development, especially in housing. Despite these pressures, construction workers remain relatively well-paid, earning a median annual wage of $58,360—about 18% above the national median. Wages have climbed 15.4% in the past two years, more than double the national average growth rate, even as overall employment in the sector levels off at around 8.3 million workers.
According to new data from Construction Coverage, the Midwest leads the nation in cost-adjusted construction wages, with Illinois topping the list at roughly $79,000 per year, followed by states like Minnesota, North Dakota and Wisconsin. These regions offer both solid pay and lower living costs, giving workers greater purchasing power. Conversely, the South lags far behind—states such as Florida, Texas and Georgia report cost-adjusted wages roughly 40% lower than Illinois. The same pattern appears at the city level: Midwestern metros like Chicago, Peoria and Minneapolis dominate the high end, while Southern cities, including Miami, Dallas and Orlando, rank lowest. The findings underscore how regional economies and cost-of-living differences shape real earnings in the construction industry, influencing where skilled workers can live most comfortably.
