New Jersey Construction Spending Expected To Reach $124B

New Jersey has $124.3 billion in planned construction projects despite shedding more than 10,000 jobs in the sector year-to-date. The Associated Construction Contractors of New Jersey released their MarketCAST report for Q4 2025 in partnership with Otteau Valuation Group.

The planned work represents a 29% jump from the $90.6 billion reported at the end of 2023. The nation shed just 1,000 jobs in the sector during the same stretch.

“New Jersey’s construction industry continues to play a critical role in driving economic growth and investment across the state,” said Jack Kocsis, Jr., chief executive officer of ACCNJ, according to ROI-NJ. “The level of planned construction activity reflected in this report demonstrates strong confidence in New Jersey’s future.”

The civil sector led all starts by volume at $4.8 billion. Healthcare and education tied with the single-family sector at $2.9 billion each.

Future projects like the $1 billion Netflix Studios Fort Monmouth under development will add more than $8 billion in economic output. Otteau pointed out the government sector saw the biggest spending increase. All categories showed gains except multifamily, which stayed flat from 2024.

Total spending climbed 13% in 2025 compared with 2024. Spending will rise 5% in 2026, according to Managing Partner and Chief Economist Jeffrey Otteau.

“New Jersey experienced solid growth in the construction sector in 2025, and we see potential for strong future growth here in the state,” said Otteau. “While new project starts slowed modestly, increased construction spending, strong performance in the government and commercial sectors, and stabilized construction inflation are good indicators for continued growth in the year ahead.”

Construction cost increases in North and South Jersey rose 2.9% and 4.1% year-over-year. Otteau said these figures fall well below pandemic-level inflation, which topped 18%.

Geopolitical uncertainties have shifted the inflation forecast for 2026. National spending declined 1% in 2025 compared with the prior year.

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