The construction market in the Twin Cities grew by quite a bit in 2020, but this is expected to be short-lived. By the end of 2022, all gains from the last few years are expected to be erased.
This is driven mainly by contracting residential and commercial sectors. The manufacturing and education sectors were hit hard by the pandemic, as most people are still working and attending school remotely. Construction labor declined slightly due to the pandemic but is now near its pre-pandemic levels. Overall unemployment tells a similar story — after rising in April and May, it is now near what it was before the pandemic struck. We expect escalation to remain low, as firms still report difficulty filling key positions. In the near future, Minneapolis-St. Paul is expected to invest in the infrastructure and office sectors. Extensions to the city’s light rail network and a new data center for Google are expected to begin construction in the next few years.