EDUCATION • GOVERNMENT • HEALTHCARE/MEDICAL HOSPITALITY • MULTI FAMILY • PROFESSIONAL SPACES RELIGIOUS FACILITIES • RETAIL • TRANSPORTATION • AND MORE! Trusted Partner for Flooring Solutions in Texas Since 1974 Over 50 Years of Excellence (281) 598-6001 | 5510 Brittmoore Rd., Houston, TX 77041 | www.mekfloors.com A FTER MORE THAN FOUR decades watching Houston’s construction market through multiple booms, busts, and rein- ventions, Pat Kiley sees some- thing for 2026 that still surprises him. “This is the best market I’ve ever seen,” said Kiley, who spent more than 20 years as chief staff executive of the Associated General Contractors of America’s Houston chapter. “For Texas and Houston overall, the next five years are very good. All three buckets are at record levels.” Those buckets, as tracked by FMI Consulting, are the backbone of the Houston construction economy. Nonres- idential buildings, including commercial, industrial and institutional facilities, are projected at roughly $23.2 billion in 2026. Residential buildings, including single-family, multifamily and improve- ment work, total about $30.7 billion. Nonbuilding structures, such as power, highways and water infrastructure, add another $13.5 billion to the forecast. Altogether, Houston’s 2026 construc- tion market is estimated at nearly $67.5 billion in put-in-place spending and expected to rise to more than $76 billion by 2029. “These are record projections for the markets of what contractors will build; they aren’t for new contracts. These numbers represent the actual ‘work and bill for’ number,” Kiley said. For contractors, this distinction matters because it speaks directly to cash flow, labor needs and how long crews will be tied up on jobs. “And, there’s rea- sonable growth in all of the individual sectors, too.” Although it’s certainly a positive scenario for Houston’s commercial contractors, there are still a few caveats and questions. First and foremost, does the market have a sufficient workforce to handle the work? Add in the stress surrounding recent immigration reform and political pressures, and the answer gets even more iffy. Second, uncertainty about material costs and availability due to rapidly fluctuating tariffs adds further complexity. Houston’s construction market is strong, but delivery remains the challenge. ByAinsleyJacobs 2026 Houston Construction Economic Outlook and Market Forecast 18CornerstoneSpring2026 agchouston.org
