NAICS 23

Construction in District of Columbia: 2026 Market Risk Report

Entry risk 56.9 (High), ranked #45 of 51 states. 1,358 establishments, 14,406 jobs.

Entry Risk Assessment

Entry Risk Score 56.9
Low 0-30
Moderate 30-42
Elevated 42-55
High 55+
High Risk

ⓘ Lower is better. Relative to national construction average.

⛔High Barrier to Entry

District of Columbia's construction sector shows high establishment density (top 5 nationally) paired with firm retention in the bottom 10. This combination indicates elevated competitive pressure on new market entrants.

5-Year Firm Retention
13.7%
Percentile within industry
Rank #45 of 51 states
Growth Momentum
37.6
Scale of 0-100
Rank #15 of 51 states
Establishment Density
0.0
vs. national average
Rank #1 of 51 states
Market Volatility
32.5
Lower is more stable
Wage Pressure Index
67.5
Labor cost pressure

1,358 Establishments in District of Columbia

1,358
Establishments
+5.0% YoY
14,406
Total Employment
-4.4% YoY
$93,796
Average Annual Wage
+6.4% YoY

District of Columbia vs National Construction Average

How District of Columbia's construction market compares to the national average across all 51 states.

Metric DC National Difference
Entry Risk Score 56.9 44.2 +12.7
5-Year Retention 13.7% 51.0% -37.3
Growth Momentum 37.6 30.9 +6.8
Market Volatility 32.5 20.9 +11.6
Establishment Density 0.0 24.6 -24.6
Wage Pressure 67.5 57.1 +10.4

Green = favorable vs national average. Red = less favorable. Metrics are relative within construction only.

District of Columbia Ranks #45 of 51 for Construction

District of Columbia ranks #45 out of 51 states for construction market entry conditions.

Construction Entry Risk by State

Rank State Risk Score Classification
#1 Wisconsin 25.1 low
#2 Michigan 28.0 low
#3 Pennsylvania 28.4 low
#4 Alabama 30.3 moderate
#5 Nebraska 32.5 moderate
#45 District of Columbia You 56.9 high
Entry Risk by State Alaska — 60.9 · #50 Alabama — 30.3 · #4 Arkansas — 34.3 · #8 Arizona — 38.6 · #16 California — 47.8 · #32 Colorado — 53.2 · #40 Connecticut — 43.2 · #27 District of Columbia — 56.9 · #45 Delaware — 43.0 · #26 Florida — 54.5 · #42 Georgia — 42.1 · #25 Hawaii — 61.1 · #51 Iowa — 34.3 · #7 Idaho — 58.4 · #48 Illinois — 49.1 · #34 Indiana — 35.0 · #11 Kansas — 51.5 · #38 Kentucky — 39.8 · #19 Louisiana — 53.6 · #41 Massachusetts — 41.5 · #23 Maryland — 35.0 · #12 Maine — 35.5 · #13 Michigan — 28.0 · #2 Minnesota — 37.3 · #14 Missouri — 54.6 · #43 Mississippi — 50.8 · #36 Montana — 45.0 · #28 North Carolina — 38.2 · #15 North Dakota — 58.3 · #47 Nebraska — 32.5 · #5 New Hampshire — 32.6 · #6 New Jersey — 48.3 · #33 New Mexico — 47.4 · #31 Nevada — 39.8 · #20 New York — 51.1 · #37 Ohio — 41.7 · #24 Oklahoma — 52.2 · #39 Oregon — 54.8 · #44 Pennsylvania — 28.4 · #3 Rhode Island — 38.8 · #17 South Carolina — 47.0 · #30 South Dakota — 34.7 · #9 Tennessee — 34.8 · #10 Texas — 46.3 · #29 Utah — 40.1 · #22 Virginia — 39.0 · #18 Vermont — 40.0 · #21 Washington — 58.1 · #46 Wisconsin — 25.1 · #1 West Virginia — 49.5 · #35 Wyoming — 59.3 · #49
Low Moderate Elevated High

Tap a state to view details

About Entry Risk Score: A weighted composite of firm retention, growth momentum, market volatility, establishment density, and wage pressure. Lower scores indicate more favorable conditions. Read full methodology →

Data Sources

Data period: 2024. Last updated: February 2026. Next refresh expected: Q2 2026 (BLS QCEW update).

Compare to Another State

How does District of Columbia stack up against other states for construction?

Select a state above to see the comparison

Construction in Neighboring States

How District of Columbia's construction market compares to bordering states.

Maryland 35.0 #12/51 Virginia 39.0 #18/51

Other Industries in District of Columbia

Healthcare and Social Assistance → Retail Trade → Accommodation and Food Services → Professional, Scientific, and Technical Services → Finance and Insurance → Real Estate and Rental and Leasing → Administrative and Support Services → Information → Other Services →