Building Costs Increase in the Second Quarter of 2024

Proactive workforce development programs are addressing tightness in the labor market.

Turner Construction Company announced that the Second Quarter 2024 Turner Building Cost Index - which measures costs in the non-residential building construction market in the United States—had increased to the value of 1421. This represents a 0.92% quarterly increase from the First Quarter 2024 and a 4.10% yearly increase from the Second Quarter 2023.

“There is a stabilization of costs for most material prices and lead times have reduced significantly with exception of specific mechanical and electrical equipment,” said Attilio Rivetti, the Turner vice president responsible for compiling the Cost Index. Attilio continued, “Our proactive workforce development programs continue to address tightness in the skilled labor market, particularly in the mechanical and electrical technical trades that are vital to serving clients in the growing industrial and advanced technology markets.” 

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.