5 Best States to Start a Construction Business

5 Best States to Start a Construction Business

According to a 2018 Consensus Construction Forecast released by The American Institute of Architects (AIA), construction spending in the U.S. is expected to grow this year. This sentiment is further supported by recent Bureau of Labor Statistics, which also suggest continued growth in the construction sector well into 2022.

For construction workers who are considering branching out on their own and opening a new business, this the projected growth can mean that 2019 is a great time to get the ball rolling. However, even though construction spending is up nationwide there are some states that may be more suited for breaking ground on new business ventures

If you live in one of these states, or are willing to make a move, then you may find that your business is in the prime location for growth and success.

Best States to Start a Construction Business


According to the National Association of Realtors (NAR), Florida is trending to be the home of a a growing number of new single-family structures, meaning construction workers specializing in residential buildings may find the sunny southern state to have the perfect climate for growth.  

How much growth?  The construction industry is set to undergo the strongest job growth at 6.6% and over 154,958 single-family home states are expected in 2020, with 156,376 expected in the following year.

Fortunately, residential housing doesn’t represent the only area of growth, as other industries, including professional and business services, hospitality industry, and education and health services are expected to increase — growth that can further boost the construction industry.


Twenty percent of U.S. construction is expected to takes place in five cities, two of which – Dallas and Houston – are in Texas.  The Texas economy, which has a 5% growth rate, is the second, fastest growing economy in the nation. That’s just one reason why the construction industry is experiencing an upward trend. However, the economic growth is also accompanied by population growth, giving rise to more housing needs.  

Another factor that will continue to contribute to construction industry growth in Texas is the state’s infrastructure, which includes approximately 313,000 miles of roadways and 53,000 bridges, And, according to a $1.27 billion in transportation improvement measure passed by Texas voters, those roads and bridges are in much need for repair.

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New York

New York state is home to a diverse landscape, with everything from a booming metropolis to sprawling farmland; it also can be a promising state when it comes to construction industry growth.

According to the New York Building Congress, the New York City alone will account for over $177 billion in construction spending over a three-year span, with 2018 representing a record-breaking year with over $61.8 billion in construction spending.

But the city isn’t the only place where the state is experiencing growth. As a whole, the state projects overall job growth in the private sector, with construction jobs representing the third largest increase.  Additionally, while other industries, like private education and health services, are also expected to grow, it’s reasonable to assume this growth will continue to bolster the construction industry.


Nevada lays claim to several accolades, but in recent years, a strong economy paired with an affordable housing market has made it an attractive location for business and residential growth. As a result of this growth, the state already has $23 billion worth of construction products in the resort, entertainment, and transportation sections.  

Additionally, as many younger professionals, namely those from Californians seek to secure a more affordable cost of living, many are moving to Nevada, making it the nation’s fourth “most-moved-to” state in 2018.  With a growing population, both residential and non-residential construction needs are expected to grow. As this growth spurs residential and commercial needs, Nevada will be in need of qualified, skilled construction workers.


Despite a brief decline, the construction industry in Arizona has recently experienced a sharp rebound and there is more growth expected, according to Arizona State Executive Budget Summary.

One reason for this trend is that, like other states on this list, Arizona has continued to see a population increase, making it the second fastest-growing state in the nation, only preceded by California. And, as populations increase, the need for skilled construction workers does as well. The state recorded a total of 18,000 construction jobs added to the economy, which was more than any other industry within the state.

If you’re considering opening a construction business, then this states may represent a great place to break ground. However, before you do, it’s also important to consider the relationship between your skill set and industry sector and the needs of your community or state. While some states are primed for non-residential construction growth, others are more suited for residential construction growth. As such, always consider the forecasted growth and current industry trends before you open up shop.

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