Construction projects across the U.S. are increasingly being delayed, canceled, or placed on indefinite hold due to financing gaps, material price surges, and tariff uncertainty, according to new data from Built and ConstructConnect.

A Built survey of 250 general contractors revealed that 35% have experienced project cancellations or significant delays in the past month due to financing shortfalls. Additionally, 70% reported consistent payment delays, prompting contractors to raise their bids by an average of 8%. More than half cited concern over tariffs as another critical pressure point.

Backing these findings, ConstructConnect’s latest data showed a 40% year-over-year increase in private projects placed on hold and a 14.1% jump in abandoned developments. Its Project Stress Index rose 1.5% in April alone and is up 16% compared to 2021 levels.

Tariffs, particularly under the Trump administration, are exacerbating the issue. The U.S. currently imposes a 10% tariff on imports from most countries, alongside a 25% tariff on aluminum and steel. A temporary reduction in tariffs on Chinese goods—from 145% to 30% for 90 days—was announced last week, but the long-term impact on construction costs remains uncertain.

Since February 2020, overall construction costs have soared 41.3%, according to the Associated Builders and Contractors. Multifamily input costs are up 0.8% year-over-year, and commercial construction inputs rose by 1.4%.

As costs climb and predictability declines, developers are increasingly pausing or walking away from projects, signaling a more cautious—and strained—market environment for the second half of 2025.