By Sebastian Obando | Construction Dive
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.
“Abandonment activity has continued to rise, reaching its highest reading in over a year,” said Bell. “While public sector abandonment activity remains within historic levels, private sector abandonments have reached multi-year highs.”
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.
