Why Texas Leads the U.S. in Construction Growth

Two construction workers stand in front of a commercial building, showcasing Texas's growth in business construction.

Texas stands as an economic powerhouse, boasting the ninth-largest economy in the world, with a remarkable 10.1% GDP growth in late 2021, significantly outpacing the 6.9% national average. The Lone Star State is asserting its dominance not just in oil and tech but also in infrastructure. This unprecedented boom in commercial construction across the state has Texas now accounting for 15.5% of national construction spending, despite representing only 9% of U.S. GDP.

With around 1,200 new residents arriving daily and businesses flocking to Texas for its business-friendly tax policies and regulatory climate, demand for commercial construction is exploding. From semiconductor fabrication plants to mixed-use retail and healthcare centers, Texas is not just growing, it’s building a future.

Key Drivers of Texas’s Construction Boom

A man and woman collaborate on a project, using green balls, in a commercial construction setting in Texas.

Population Growth and Urban Expansion

One of the primary drivers behind Texas’s commercial development is its rapidly growing population.

  • 1,200 new residents per day: Migration from high-cost states like California and New York is pushing urban expansion.
  • New housing demands new infrastructure: As cities grow, so does the need for surrounding commercial development: retail centers, schools, medical offices, and business parks.

 Texas Urban Population Growth (2020–2024)

This table highlights how rapid population growth across major Texas cities is driving a corresponding increase in commercial construction permits issued in 2023.

City Population
Growth %
New Commercial Permits
Issued (2023)
Austin +6.2% 9,140
Dallas-Fort Worth +5.8% 12,700
San Antonio +4.5% 7,820
Houston +4.9% 10,300

Business Relocation & Corporate Expansion

Texas continues to top the charts as the #1 state for business for 20 consecutive years.

  • Corporate relocations: Tesla, Charles Schwab, and Oracle are among the many large companies expanding or moving to Texas.
  • No corporate or personal income tax: A huge incentive for business migration.
  • Access to key markets: Texas provides easy trade with Mexico and proximity to Gulf Coast ports.

Top States for Business Relocation (2020–2024)

This chart illustrates the top states attracting business relocations between 2020 and 2024, with Texas leading by a significant margin.

(Percentage of total U.S. business relocations)

Texas                    █████████████████████ 28%

Florida                 ████████████           17%

Tennessee          ██████                 9%

Arizona                 █████                  8%

North Carolina  ████                   7%

High-Tech and Specialized Construction

Texas has also become a national leader in tech-related construction.

  • Semiconductor facilities: Texas accounted for 23.9% of all U.S. semiconductor facility construction in 2023.
  • Hyperscale data centers: The Dallas-Fort Worth area is now a top-five market nationally for hyperscale data infrastructure.
  • Energy innovation: Renewable energy construction, especially wind and solar, is rapidly accelerating in West and Central Texas.

Spotlight on Commercial Construction in the RGV

A 3D rendering of a building interior with a desk and chairs, highlighting commercial construction in Texas.

The Rio Grande Valley (RGV) reflects Texas’s larger construction boom but with distinct regional dynamics. Thanks to its strategic location along the U.S.-Mexico border, the RGV is a growing hub for trade and commercial development. Companies like Treviño Construction are playing a significant role in shaping the region’s growth by adding “character to any commercial space, including medical or business offices, industrial and retail spaces, restaurants, and more.”

Some of the key commercial trends and developments in the RGV include:

  • Logistics and warehousing expansion to support cross-border commerce
  • New medical facilities to meet rising healthcare demand
  • Retail growth tailored to the region’s diverse population

These projects generate construction jobs today and economic stability for the future.

The RGV also benefits from Texas’s business-friendly policies, including minimal regulations, making it an attractive destination for businesses looking to expand or relocate.

However, the region also faces specific challenges:

  • A need for skilled workforce development, especially in trades required for complex commercial builds
  • Unique climate conditions that call for adaptive building materials and energy-efficient design in a semi-tropical environment

Like the rest of the state, the RGV is starting to see more demand for specialized facilities such as:

  • Data centers
  • Advanced manufacturing sites

While these may be smaller in scale than the $17 billion Samsung semiconductor facility in Taylor or the hyperscale data centers in the Dallas-Fort Worth area, they still require contractors with expertise in clean rooms, secure infrastructure, and sophisticated mechanical systems, areas where Treviño Construction continues to demonstrate leadership.

Meeting Modern Demands: The Future of Commercial Building Construction Services in Texas

A modern commercial building in Texas with large windows, basking in sunlight, designed for growing businesses.

Clients now demand more than just good workmanship. They want speed, cost efficiency, and communication.

  • Pre-construction planning tools: 3D modeling and BIM streamline the permit and design phases.
  • Value engineering:  Treviño Construction helps clients reduce costs by suggesting alternative materials that do not compromise quality.
  • Client experience:  Treviño Construction emphasizes transparency, collaboration, and tailored services throughout the project.

Texas’s Economic Trajectory and Construction’s Role

The commercial construction sector is deeply intertwined with Texas’s future economic direction.

  • 16.5% of all U.S. non-residential construction contracts originated in Texas since mid-2022.
  • Construction job creation is accelerating in every major city.
  • Infrastructure expansion will remain a top priority for sectors such as AI, logistics, and green energy.

Sustainability & Green Construction

The construction landscape in Texas is undergoing a significant shift toward sustainability, mirroring the broader global construction industry. Sustainability is no longer a bonus,  but an expectation.

  • Renewable integration: Solar panels, EV charging, and smart grids are standard features for many commercial projects.
  • Energy-intensive sectors: Data centers and semiconductor fabs are leveraging onsite solar and wind energy for sustainable operations.
  • Local economic impact: From 2011 to 2014 alone, green construction in Texas directly generated over 720,000 jobs, with significant income and tax contributions tied to LEED-certified projects, which demonstrates economic strength behind green building.
  • Clean energy tax revenues
    Utility-scale solar, wind, and battery projects in Texas are projected to generate more than $20 billion in tax revenues, signaling major investment flows into sustainable infrastructure.

Green Construction Investment in Texas (2020–2024)
(Billions USD)

2020   ████   $5.2B

2021   █████  $6.9B

2022   ██████ $8.7B

2023   ████████ $11.1B

2024*  █████████ $13.5B

Building the Future of Texas

A team of construction workers on a roof, highlighting Texas's commercial construction to support expanding businesses.

Texas isn’t just growing. It’s building smarter, greener, and more ambitiously than any other state in the U.S. From urban tech hubs to cross-border industrial corridors, commercial construction is laying the literal foundation of the state’s economic future.

If you’re looking to create a commercial space that stands out in Texas’s booming market, Treviño Construction is your trusted partner. From sleek offices to healthcare complexes and data-ready infrastructure, our team brings innovation, precision, and a deep understanding of Texas’s evolving landscape. Build your vision to become part of Texas’s economic growth: Contact Treviño Construction and explore our commercial construction services, and discover how we turn ideas into landmarks. From estimate to completion, the experience at Treviño Homes is built on communication and honesty, helping your business grow.

 


1. What types of commercial properties are currently in highest demand in Texas?

Answer:
Industrial warehouses, logistics centers, and mixed-use developments are in especially high demand. As e-commerce and trade expand, businesses are prioritizing flexible spaces that combine storage, retail, and office functions in one.


2. How does Texas zoning law affect commercial construction timelines?

Answer:
While Texas is known for streamlined permitting and fewer regulations, zoning laws still vary by city and county. Understanding local zoning codes is essential early on to avoid costly redesigns or delays in approvals.


3. Are commercial builders in Texas using modular or prefabricated construction?

Answer:
Yes, modular and prefab construction methods are increasingly used, especially for healthcare clinics, retail chains, and temporary office expansions. These methods speed up delivery timelines and help control costs in labor-tight markets.


4. How are rising construction costs affecting commercial builds in Texas?

Answer:
Fluctuating material costs and labor shortages are pushing prices up. Many developers work with builders like Treviño Construction who offer value engineering, recommending alternative materials or designs without sacrificing quality or durability.


5. What financing options exist for commercial construction in Texas?

Answer:
Commercial construction loans are available from regional banks, credit unions, and private lenders. Some projects qualify for state or federal tax incentives if they meet green building or economic development criteria. Treviño Construction also offers financing options


6. How are extreme weather events impacting commercial design in Texas?

Answer:
With the increasing risk of hurricanes, heat waves, and flooding, many commercial buildings are now designed with reinforced roofing, elevated foundations, and backup energy systems to ensure resilience and business continuity.


7. Can commercial construction projects in Texas qualify for LEED certification?

Answer:
Absolutely. LEED-certified projects are growing in Texas. Builders who prioritize energy efficiency, sustainable materials, and indoor air quality can help property owners achieve certification and benefit from tax incentives and operational savings.


8. What role does technology play in modern Texas commercial construction?

Answer:
Technology is central to today’s builds. From drone surveys and 3D laser scanning to project management software and real-time client dashboards, modern contractors use tech to improve accuracy, speed, and transparency throughout a project.