Healthcare construction spending hits a record $76.8B

Healthcare construction reached a record $76.8b in 2025, with an 8.8% compound annual growth rate since 2019 (9.5% increase over 2024). Activity then cooled in 2026, with January-June averaging a $74.6b annualized pace, about 3% under the 2025 pace, as data-center and advanced-manufacturing work competes for the same MEP labor and electrical gear. Private owners still account for the most spending ($59.3b of 2025 spending, a 77% share), but public investment is driving a faster rate of growth, up 10.7% a year since 2019 versus 8.3% for private and still climbing in 2026 ($18.2b annualized in January-June, a 24.4% share) while private spending eases. Healthcare accounted for 5.9% of all nonresidential construction in June 2026, and aging healthcare facilities, with a 13.2-year median age, continue to support replacement demand.