diff --git a/Cargo.toml b/Cargo.toml
index ba661a077..99ab958ab 100644
--- a/Cargo.toml
+++ b/Cargo.toml
@@ -23,12 +23,13 @@ atty = "0.2"
 bytesize = "1.0"
 cargo-platform = { path = "crates/cargo-platform", version = "0.1.1" }
 crates-io = { path = "crates/crates-io", version = "0.31" }
+crossbeam-channel = "0.4"
 crossbeam-utils = "0.7"
 crypto-hash = "0.3.1"
 curl = { version = "0.4.23", features = ["http2"] }
 curl-sys = "0.4.22"
 env_logger = "0.7.0"
-pretty_env_logger = { version = "0.3", optional = true }
+pretty_env_logger = { version = "0.4", optional = true }
 anyhow = "1.0"
 filetime = "0.2"
 flate2 = { version = "1.0.3", features = ["zlib"] }
diff --git a/src/bin/cargo/commands/build.rs b/src/bin/cargo/commands/build.rs
index df3a69c18..1ab83848b 100644
--- a/src/bin/cargo/commands/build.rs
+++ b/src/bin/cargo/commands/build.rs
@@ -63,7 +63,12 @@ pub fn exec(config: &mut Config, args: &ArgMatches<'_>) -> CliResult {
         ProfileChecking::Checked,
     )?;
 
-    compile_opts.export_dir = args.value_of_path("out-dir", config);
+    if let Some(out_dir) = args.value_of_path("out-dir", config) {
+        compile_opts.export_dir = Some(out_dir);
+    } else if let Some(out_dir) = config.build_config()?.out_dir.as_ref() {
+        let out_dir = out_dir.resolve_path(config);
+        compile_opts.export_dir = Some(out_dir);
+    }
     if compile_opts.export_dir.is_some() {
         config
             .cli_unstable()
diff --git a/src/cargo/core/compiler/job_queue.rs b/src/cargo/core/compiler/job_queue.rs
index 55832cb90..559549117 100644
--- a/src/cargo/core/compiler/job_queue.rs
+++ b/src/cargo/core/compiler/job_queue.rs
@@ -54,11 +54,11 @@ use std::collections::{BTreeMap, HashMap, HashSet};
 use std::io;
 use std::marker;
 use std::mem;
-use std::sync::mpsc::{channel, Receiver, Sender};
 use std::sync::Arc;
 use std::time::Duration;
 
 use anyhow::format_err;
+use crossbeam_channel::{unbounded, Receiver, Sender};
 use crossbeam_utils::thread::Scope;
 use jobserver::{Acquired, Client, HelperThread};
 use log::{debug, info, trace};
@@ -341,7 +341,7 @@ impl<'a, 'cfg> JobQueue<'a, 'cfg> {
         let _p = profile::start("executing the job graph");
         self.queue.queue_finished();
 
-        let (tx, rx) = channel();
+        let (tx, rx) = unbounded();
         let progress = Progress::with_style("Building", ProgressStyle::Ratio, cx.bcx.config);
         let state = DrainState {
             total_units: self.queue.len(),
diff --git a/src/cargo/core/workspace.rs b/src/cargo/core/workspace.rs
index b34ea9aca..c2cb23a8f 100644
--- a/src/cargo/core/workspace.rs
+++ b/src/cargo/core/workspace.rs
@@ -829,6 +829,10 @@ impl<'cfg> Workspace<'cfg> {
         }
         Ok(())
     }
+
+    pub fn set_target_dir(&mut self, target_dir: Filesystem) {
+        self.target_dir = Some(target_dir);
+    }
 }
 
 impl<'cfg> Packages<'cfg> {
diff --git a/src/cargo/ops/cargo_install.rs b/src/cargo/ops/cargo_install.rs
index a2c5565e7..505b940e8 100644
--- a/src/cargo/ops/cargo_install.rs
+++ b/src/cargo/ops/cargo_install.rs
@@ -200,31 +200,35 @@ fn install_one(
         )?
     };
 
-    let mut td_opt = None;
-    let mut needs_cleanup = false;
-    let overidden_target_dir = if source_id.is_path() {
-        None
-    } else if let Some(dir) = config.target_dir()? {
-        Some(dir)
-    } else if let Ok(td) = TempFileBuilder::new().prefix("cargo-install").tempdir() {
-        let p = td.path().to_owned();
-        td_opt = Some(td);
-        Some(Filesystem::new(p))
+    let (mut ws, git_package) = if source_id.is_git() {
+        // Don't use ws.current() in order to keep the package source as a git source so that
+        // install tracking uses the correct source.
+        (Workspace::new(pkg.manifest_path(), config)?, Some(&pkg))
+    } else if source_id.is_path() {
+        (Workspace::new(pkg.manifest_path(), config)?, None)
     } else {
-        needs_cleanup = true;
-        Some(Filesystem::new(config.cwd().join("target-install")))
-    };
-
-    let mut ws = match overidden_target_dir {
-        Some(dir) => Workspace::ephemeral(pkg, config, Some(dir), false)?,
-        None => {
-            let mut ws = Workspace::new(pkg.manifest_path(), config)?;
-            ws.set_require_optional_deps(false);
-            ws
-        }
+        (Workspace::ephemeral(pkg, config, None, false)?, None)
     };
     ws.set_ignore_lock(config.lock_update_allowed());
-    let pkg = ws.current()?;
+    ws.set_require_optional_deps(false);
+
+    let mut td_opt = None;
+    let mut needs_cleanup = false;
+    if !source_id.is_path() {
+        let target_dir = if let Some(dir) = config.target_dir()? {
+            dir
+        } else if let Ok(td) = TempFileBuilder::new().prefix("cargo-install").tempdir() {
+            let p = td.path().to_owned();
+            td_opt = Some(td);
+            Filesystem::new(p)
+        } else {
+            needs_cleanup = true;
+            Filesystem::new(config.cwd().join("target-install"))
+        };
+        ws.set_target_dir(target_dir);
+    }
+
+    let pkg = git_package.map_or_else(|| ws.current(), |pkg| Ok(pkg))?;
 
     if from_cwd {
         if pkg.manifest().edition() == Edition::Edition2015 {
diff --git a/src/cargo/util/config/mod.rs b/src/cargo/util/config/mod.rs
index 105aea2a2..39bf92b0a 100644
--- a/src/cargo/util/config/mod.rs
+++ b/src/cargo/util/config/mod.rs
@@ -1643,6 +1643,7 @@ pub struct CargoBuildConfig {
     pub rustc_wrapper: Option<PathBuf>,
     pub rustc: Option<PathBuf>,
     pub rustdoc: Option<PathBuf>,
+    pub out_dir: Option<ConfigRelativePath>,
 }
 
 /// A type to deserialize a list of strings from a toml file.
diff --git a/src/doc/src/reference/unstable.md b/src/doc/src/reference/unstable.md
index efe8ac545..cace3c973 100644
--- a/src/doc/src/reference/unstable.md
+++ b/src/doc/src/reference/unstable.md
@@ -76,6 +76,13 @@ directory. Example:
 cargo +nightly build --out-dir=out -Z unstable-options
 ```
 
+This can also be specified in `.cargo/config` files.
+
+```toml
+[build]
+out-dir = "out"
+```
+
 ### doctest-xcompile
 * Tracking Issue: [#7040](https://github.com/rust-lang/cargo/issues/7040)
 * Tracking Rustc Issue: [#64245](https://github.com/rust-lang/rust/issues/64245)
diff --git a/tests/testsuite/install.rs b/tests/testsuite/install.rs
index 98dd12fe2..c2777f85a 100644
--- a/tests/testsuite/install.rs
+++ b/tests/testsuite/install.rs
@@ -316,10 +316,10 @@ fn multiple_crates_git_all() {
     let p = git::repo(&paths::root().join("foo"))
         .file(
             "Cargo.toml",
-            r#"\
-[workspace]
-members = ["bin1", "bin2"]
-"#,
+            r#"
+            [workspace]
+            members = ["bin1", "bin2"]
+            "#,
         )
         .file("bin1/Cargo.toml", &basic_manifest("bin1", "0.1.0"))
         .file("bin2/Cargo.toml", &basic_manifest("bin2", "0.1.0"))
@@ -1422,3 +1422,29 @@ fn install_version_req() {
         .with_stderr_contains("[INSTALLING] foo v0.0.3")
         .run();
 }
+
+#[cargo_test]
+fn git_install_reads_workspace_manifest() {
+    let p = git::repo(&paths::root().join("foo"))
+        .file(
+            "Cargo.toml",
+            r#"
+            [workspace]
+            members = ["bin1"]
+
+            [profile.release]
+            incremental = 3
+            "#,
+        )
+        .file("bin1/Cargo.toml", &basic_manifest("bin1", "0.1.0"))
+        .file(
+            "bin1/src/main.rs",
+            r#"fn main() { println!("Hello, world!"); }"#,
+        )
+        .build();
+
+    cargo_process(&format!("install --git {}", p.url().to_string()))
+        .with_status(101)
+        .with_stderr_contains("  invalid type: integer `3`[..]")
+        .run();
+}
diff --git a/tests/testsuite/out_dir.rs b/tests/testsuite/out_dir.rs
index 9c2f774fa..77079cb41 100644
--- a/tests/testsuite/out_dir.rs
+++ b/tests/testsuite/out_dir.rs
@@ -246,6 +246,30 @@ fn avoid_build_scripts() {
     );
 }
 
+#[cargo_test]
+fn cargo_build_out_dir() {
+    let p = project()
+        .file("src/main.rs", r#"fn main() { println!("Hello, World!") }"#)
+        .file(
+            ".cargo/config",
+            r#"
+            [build]
+            out-dir = "out"
+            "#,
+        )
+        .build();
+
+    p.cargo("build -Z unstable-options")
+        .masquerade_as_nightly_cargo()
+        .run();
+    check_dir_contents(
+        &p.root().join("out"),
+        &["foo"],
+        &["foo", "foo.dSYM"],
+        &["foo.exe", "foo.pdb"],
+    );
+}
+
 fn check_dir_contents(
     out_dir: &Path,
     expected_linux: &[&str],