Building Costs Increase in the First Quarter of 2025

Turner Construction Company announced that the First Quarter 2025 Turner Building Cost Index—which measures costs in the non-residential building construction market in the United States—had increased to the value of 1459. This represents a 1.18% quarterly increase from the Fourth Quarter 2024 and a 3.62% yearly increase from the First Quarter 2024.

“The fundamentals of the construction market remain strong. Large projects in the Advanced Technology market continue to create upward pressure on specific material and equipment costs and on labor availability in some local markets. Our SourceBlue, preconstruction, and procurement teams are working with our project teams and clients to mitigate tariff impact through strategic sourcing solutions,” said Attilio Rivetti, the Turner vice president responsible for compiling the Cost Index. Attilio continued, “Overall, skilled labor availability is improving in many areas, with some trade contractors beginning to report increased labor capacity.” 

Turner has prepared the construction cost forecast for more than 80 years. The building costs and price trends tracked by the Turner Building Cost Index may or may not reflect regional conditions in any given quarter. The Cost Index is determined by several factors considered on a nationwide basis, including labor rates and productivity, material prices and the competitive condition of the marketplace. This index does not necessarily conform to other published indices because others do not generally take all these factors into account