Construction In D.C. Plummets To 15-Year Low Point

New data shows groundbreakings across all property sectors declined by 27% in 2025 compared to 2024.

Apr. 9, 2026 at 5:33am

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A minimalist, high-contrast studio photograph featuring a collection of architectural models, building materials, and engineering tools arranged in a clean, elegant composition on a plain white background, conceptually representing the slowdown in construction activity in Washington, D.C.The sharp decline in new construction projects breaking ground in the nation's capital reflects broader economic uncertainty and shifts in real estate demand.Washington Today

The amount of new construction that got underway in Washington, D.C. during 2025 was down 68% from the pandemic-era peak in 2022 and marked the slowest period in at least a decade and a half, according to the latest annual development report from the Washington DC Economic Partnership.

Why it matters

The significant drop in construction starts across office, hospitality, and community sectors reflects the ongoing economic uncertainty and shifts in real estate demand in the nation's capital, which could have broader implications for the local economy and job market.

The details

In 2025, there were just 3.6 million square feet of new construction starts in D.C., a 27% decline from 2024. This was the lowest level since at least 2010, when the Washington DC Economic Partnership first began tracking the data. Construction starts in the office, hospitality, and 'quality of life' sectors like education, medical, and community amenities were all down, while housing and retail starts saw increases.

  • The amount of development that got underway during 2025 was down 68% from the pandemic-era peak in 2022, the year the Federal Reserve began raising interest rates.
  • Construction starts in 2025 marked the slowest period in at least a decade and a half, since 2010 when the Washington DC Economic Partnership first began tracking the data.

The players

Washington DC Economic Partnership

A non-profit organization that promotes economic development and business growth in Washington, D.C.

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The takeaway

The sharp decline in construction activity across multiple real estate sectors in Washington, D.C. reflects the broader economic uncertainty and shifts in demand that the city is navigating, which could have significant implications for the local job market and economy if the trend continues.