The South continues to guide the nation in building backlog size, suggesting sturdy financial efficiency, in accordance with new knowledge from Related Builders and Contractors.

“Backlog is longer within the South as a result of contractors are busier,” ABC economist Zack Fritz informed The Middle Sq.. “This development is downstream of the South’s financial outperformance – speedy inhabitants progress has fueled a wholesome labor market and vital improvement exercise.”

The backlog determine represents the typical size of time contractors are booked upfront, and the South is main all different areas by a median of two.13 months in July.

ABC’s Building Backlog Indicator for the South measured 9.8 months in July 2025, the identical as in July 2024, however nonetheless considerably greater than each different area.

Nonetheless, the survey additionally discovered contractor confidence in gross sales and revenue margins fell in July.

“Fewer than 2% of ABC members count on their revenue margins to extend considerably over the subsequent six months, the fewest since October 2024,” stated Anirban Basu, a chief economist for Related Builders and Contractors. “That is possible as a consequence of commerce coverage and the latest acceleration in supplies value escalation; greater than 80% of ABC members have been notified of tariff-related value will increase.”

The backlog, in accordance with Basu, is partly pushed by infrastructure tasks and a surge in knowledge heart building, noting that “1 in each 8 ABC members is presently underneath contract to carry out work on an information heart undertaking.”

Backlog is measured in months by averaging the ratio of contractors’ complete work underneath contract to their prior 12 months revenues. Whereas some contractors report having no backlog in any respect, Fritz stated the studying will “realistically all the time be constructive” when averaged throughout the trade.

Migration developments since 2020 closely favor the South, with Texas, Florida, North Carolina, Georgia, and South Carolina collectively gaining almost 1.2 million new residents. Census Bureau knowledge exhibits it was the one area as a complete to draw extra individuals from different states than it misplaced.

Louisiana and Mississippi have been the lone exceptions within the South, recording slight inhabitants declines in contrast with 2020.

In response to ABC’s methodology, the South contains: Alabama, Arkansas, Florida, Kentucky, Louisiana, Mississippi, North Carolina, Oklahoma, South Carolina, Georgia, Tennessee, Texas and Virginia.