Construction Purchasing Power Report

Infrastructure Spending Drives Job Rebound After 2025 Stagnation

After construction employment flatlined in 2025 due to high interest rates and rising material costs, large federal infrastructure investments and new manufacturing facilities sparked a dramatic turnaround. Fox21Online reports that by mid-2026, the industry hit a record high of 8.34 million workers—driven by AI data centers, energy projects, and semiconductor facilities. According to the Associated General Contractors of America, nonresidential construction specifically grew 2.6% year-over-year.

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Midwest States Beat Coastal Cities in Real Purchasing Power

While San Jose, Boston, Seattle, and San Francisco pay strong nominal wages, their high cost of living erases much of that advantage. Construction Coverage's analysis found Illinois leads the nation with cost-adjusted earnings of $80,604. Minnesota ranks fourth at $73,605, and Washington ranks sixth at $70,552. Midwestern states occupy 8 of the top 15 positions nationwide because union-backed prevailing wage enforcement pairs with low regional price levels.

Alaska ranks third nationally with adjusted earnings of $73,877. Wyoming earned $64,461 after cost adjustment, while Colorado came in at $59,378. Construction Coverage emphasized that regional price differences substantially reduce what workers can actually buy with their paychecks.

Southern States Cluster at Bottom of Purchasing Power Rankings

Southern states hold 9 of the 10 lowest cost-adjusted wage positions nationwide. Indiana ranks 14th from the top at $66,282 adjusted earnings, Oregon earns $63,980, and Idaho comes in lowest measured at $58,810. Oklahoma ranks 11th from the bottom, while South Dakota ranks 13th from the bottom. The regional disparities highlight how nominal wages alone mask true economic opportunity.

Trade Workers May Shift Toward Midwest for Better Living Standards

The data suggests construction workers seeking maximum purchasing power should target Midwestern and inland states rather than expensive coastal metros. Construction Coverage's benchmark report implies that real earnings—not nominal wages—determine middle-class living standards. As Associated General Contractors of America CEO Jeffrey Shoaf stated, "Construction firms continue to add workers where demand remains strongest." Migration toward high purchasing-power regions could reshape labor availability patterns across the industry.