Private developers scrapped more projects in May than in any other month on record, according to the latest data from Cincinnati-based ConstructConnect. The Project Stress Index, a measure of construction projects that have been paused, abandoned or have a delayed bid date, increased 11.4% in May. That figure puts project stress 22.8% above 2021 baseline levels, said Devin Bell, associate economist at ConstructConnect. Bell pointed to high interest rates and shifting market conditions as key factors reducing project viability. He said those pressures continue to erode developer confidence. A 30.3% spike in overall project abandonments caused the surge in stress in May, according to the report. In contrast, delayed bids dropped 1.9% and on-hold activity remained essentially flat. Public projects moved in the opposite direction over the last year. Abandonments on public works remained flat, while public projects put on hold fell 15.2%, according to the report.
https://www.constructiondive.com/news/private-project-abandonments-record-high/750100/