Top Cities for Construction Growth in 2025
The question a lot of tradespeople are asking right now is simple: where is the work really booming? What are the Top Cities for Construction Growth in 2025?
A new nationwide analysis from Astrak, a supplier of heavy-machinery undercarriage parts, dug into the data to find out which U.S. cities currently offer the best opportunities for skilled construction workers. They looked at:
- Share of local employment in construction
- Year-over-year job growth
- New housing units per 1,000 existing homes
- Median construction wages
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The findings line up with what many contractors are seeing on the ground. U.S. construction spending is hovering around $2.2 trillion a year, with roughly 8.2 million people employed in the industry nationwide. In 2025 alone, Astrak estimates 96,000 new construction jobs have been added, a 1.2% increase over last year.
Yet even with that growth, the industry still reports well over 100,000 open positions in many months, showing how tight the labor market is for skilled trades (Reference). Between record investment in infrastructure, housing and massive data centers to power AI, demand for construction labor isn’t slowing down any time soon.
So where are the standout cities right now? Astrak’s latest ranking puts Phoenix, Raleigh and Austin at the top of the list.
Phoenix, Arizona: Desert Mega projects and Steady Paychecks
Phoenix takes the number-one spot in Astrak’s ranking for Construction Growth. Around 8.4% of the local workforce is employed in construction, one of the highest concentrations in the country, and construction jobs grew 6.9% year over year – the fastest growth rate of any city analyzed.
That demand is being driven by:
- Large mixed-use developments, including a planned $7 billion Halo Vista project
- Ongoing semiconductor and manufacturing investment
- Strong residential growth and housing demand
The region is authorizing more than 21 new housing units per 1,000 existing homes, a powerful indicator that the pipeline of work will stay strong. Median wages for construction workers in Phoenix sit in the mid-$50,000s, offering a solid balance of earnings and cost of living compared with many coastal markets.
For tradespeople in plumbing, HVAC, hydronics or mechanical, Phoenix combines three important ingredients: steady work, wage growth and long-term project pipelines.
Raleigh, North Carolina: Housing Boom and Major District Builds
Raleigh lands in the number-two position and actually matches Phoenix with 8.4% of its workforce in construction. Construction employment grew 5.5% over the last year, supported by sustained population growth and a strong mix of commercial and infrastructure projects.
Key drivers in Raleigh include:
- The planned $1 billion Raleigh Sports and Entertainment District
- Extensive housing development to keep up with in-migration
- Ongoing public and private infrastructure upgrades
One of the most impressive stats: Raleigh leads all U.S. cities in new housing activity, with about 28.8 new units permitted per 1,000 existing homes. Median construction wages sit just above $50,000, but when you factor in cost of living, Raleigh remains very competitive with larger metros.
For contractors and crews, that means a deep pipeline of residential and mixed-use work, and plenty of opportunity for companies that can staff up and deliver quality.
Austin, Texas: Tech, Transit and High-Velocity Growth
At number three, Austin continues its reputation as a boomtown – not just for tech workers, but for trades as well. About 7.7% of the local workforce is employed in construction, and jobs in the sector have grown 6.4% year over year, second only to Phoenix in Astrak’s dataset.
Big projects include:
- The multibillion-dollar Project Connect light rail program
- Large residential communities to keep up with population growth
- Corporate campuses, data centers and mixed-use districts
Austin also ranks near the top in housing activity with 28.6 new units per 1,000 existing homes, and median construction wages are again just over $50,000. When you blend wage levels, project volume and long-term investment, it’s easy to see why Austin keeps drawing in skilled tradespeople from across the country.
Other Cities on the Rise
Phoenix, Raleigh and Austin get the headlines for Construction Growth, but Astrak’s ranking also highlights Sacramento, California and Indianapolis, Indiana rounding out the top five.
- Sacramento has one of the highest shares of local employment in construction (over 9%) and a median wage topping $66,000.
- Indianapolis combines strong job growth (over 6% year over year) with median wages in the mid-$60,000s, making it a solid option for workers looking for a central U.S. location and lower housing costs.
Separate wage analyses show that many Midwestern markets offer some of the best cost-adjusted pay for construction workers, with Illinois leading the way at more than $79,000 annually after adjusting for cost of living.Construction Coverage
Why This Matters for the Trades
For plumbers, HVAC pros, hydronic specialists and mechanical contractors, these rankings are more than just numbers:
- They point to regions where backlogs are strong and companies are struggling to fill open positions.
- They give apprentices and younger tradespeople a roadmap for where to build a long-term career.
- They help business owners think about expansion, satellite offices or traveling crews where the work justifies the investment.
With national construction spending still near record highs and major trends like AI data centers, grid upgrades and housing demand driving new builds, the trades remain one of the most resilient career paths in the U.S.Reuters+1
On the Mic: This Week’s Podcasts
Looking for deeper conversations around careers, technology and change in the trades? Check out these featured episodes:
AFC: Move Over Bob
“Let your curiosity outweigh your fear,” says Kate Glantz, co-founder of the new women-in-the-trades initiative Move Over Bob. She joins her MOB partner Angie Cacace to talk about:
- Why the trades need more women and diverse voices
- How curiosity and courage can open doors on jobsites
- Practical ways to support and mentor the next generation
👉 Listen here: https://www.buzzsprout.com/1203956/episodes/18138381
MTGA: Trolling Socials
In this episode, Eric and Andy tackle the sometimes heated online debates around plumbing and HVAC technology. They dig into:
- The love-it-or-hate-it reputation of fittings like SharkBites
- When push-to-connect makes sense – including radiant manifold installations
- How to balance “what the internet says” with real-world performance and experience
👉 Listen here: https://www.buzzsprout.com/1198388/episodes/18120762
