North Central

Construction trends in the North Central region highlight a growing urban-rural divide.

In rural states like North and South Dakota, construction has slowed due to higher interest rates, volatile material costs, and labor shortages, which have been exacerbated by workers relocating to cities. However, these states are also seeing some momentum carried over from the Biden administration’s initiatives promoting green energy, supported by their ample sunshine – typically 100 to 200 sunny days per year.

Chicagoland is the largest market in the region, and we will discuss it in more detail later in this report. In the other major cities in the region, like Minneapolis, Indianapolis, or Columbus, much attention has been devoted to formerly industrial land. States like Ohio and Michigan have long been hubs for manufacturing, and this is again becoming the case thanks to public policy. In Ohio, manufacturing grew by an impressive 22% in 2022 and an even more impressive 45% in 2023, followed by a comparatively modest 20% in 2024. Both states also rely on infrastructure that is near the end of its useful life – addressing this was a key provision of the Infrastructure Investment and Jobs Act. Funds carried over from the previous administration continue to support projects across the region.

* Other structures include religious buildings, amusement, government communications, and public recreation projects.