Construction is one of the most important sectors of society in the Kyrgyz Republic. The analysis of its development makes it possible to identify the problematic sides from the point of view of the welfare economy and show the directions for solving the accumulated issues. This research identifies the main trends in the development of the construction market of Kyrgyzstan, shows the strengths and weaknesses of its functioning, and provides suggestions to improve the current situation. The analysis of financial dynamics in Kyrgyzstan’s construction industry revealed a decline in the sector’s financial stability and its overall competitiveness. The greatest decline was felt in the conditions of the COVID-19 pandemic. This period saw increasing costs for construction materials and construction projects. The burden of costs is increasingly shifted to the country’s population and the high cost of housing reduces its availability. In the current environment, the adoption of new technologies, increased investment, a focus on environmental principles, and the development of skilled personnel can form the foundation for improving the country’s construction industry. It is essential to enhance state control and oversight of this market, ensuring a transition to a higher-quality level of construction that aligns with international standards.