The number of construction cranes across major U.S. cities declined significantly in the first quarter of 2025, reflecting hesitation in the development sector as economic uncertainty lingers. According to Rider Levett Bucknall’s (RLB) latest biannual crane index, the dip in crane activity may be signaling a cooling in new project starts despite some positive market conditions.

Crane Numbers Reflect Caution

RLB’s report, released April 2, found an 18.8% drop in the number of cranes observed in major North American cities, representing a decrease of 30 cranes since the last survey in Q3 2024. The decline comes at a time when interest rates are easing and the pace of construction cost increases has slowed, suggesting that developers may still be reluctant to initiate large-scale projects.

“Like many economic indicators, the number of active cranes in North America for the first quarter of 2025 suggests market hesitation to move forward with major construction projects due to economic uncertainty,” the report stated.

Out of the 14 North American cities included in the survey, seven saw a drop in crane counts of more than 20%, pointing to widespread caution across markets.

Pockets of Strength: NYC and Honolulu Hold Ground

Despite the overall slowdown, some cities bucked the trend. New York City stood out as the only U.S. city to increase its crane count between Q3 2024 and Q1 2025, adding four cranes for a total of nine. The bulk of this activity was concentrated in mixed-use projects, with five cranes dedicated to such developments. In addition, two significant residential towers are now under construction — a level of activity not seen since early 2023.

“This construction surge reflects the ongoing growth and revitalization of New York City’s urban landscape,” the report read.

Honolulu, while experiencing a small decline from 14 to 12 cranes, still showed solid momentum in the residential and mixed-use sectors. The city’s ongoing urban development initiatives helped sustain construction activity even as other markets pulled back.

Seattle Leads the Decline

Seattle experienced the largest decline in crane activity among all surveyed cities, with its crane count falling from 28 to 17 — a drop of nearly 40%. The steep reduction highlights a slowdown in a city that has typically been among the most active construction hubs in the U.S.

Other cities with notable drops include Denver, Phoenix, and Washington, D.C., which are still grappling with a mix of rising financing costs (despite recent rate relief), uncertain demand forecasts, and tighter developer margins.

Optimism on the Horizon

Despite the pullback in crane activity, RLB’s report maintains a cautiously optimistic tone. The firm anticipates a rebound in crane numbers within the next six to 12 months as confidence returns to the market and projects currently in planning stages begin to break ground.

RLB also pointed to a slight stabilization in construction costs and ongoing demand for residential and mixed-use developments in key metropolitan areas, which could drive a moderate increase in activity in the near future.

“While current data indicates a temporary slowdown, the longer-term trajectory of the construction sector remains strong, particularly in cities that continue to attract population and investment,” the report noted.

Originally reported by Zachary Phillips in Construction Dive.