Washington D.C. is different from the rest of the country in many ways. Laws limiting building height mean that almost all of the available land is used.
In turn, this has pushed many new developments to nearby communities like Alexandria and Bethesda. One in four workers is a direct employee of the federal government and have jobs regardless of the economic situation. These workers command high wages, which keeps spending high and acts as a shock-absorber for the city’s economy. The pandemic did not have as strong of an impact on the D.C. market, and unemployment remained well below the national average.
All of this means that the city’s construction market remains steady and stable. It is predicted to grow by less than one percent each year through 2025. The residential sector is the largest by a fair margin, driven by mixed-density developments outside of the city limits. Several high-profile infrastructure projects are in the works to connect these workers to jobs in downtown D.C. Construction employment remains below 2019 levels, however, meaning that costs will likely be increased in the short term.