Building Costs Increase in the Third Quarter of 2024

Turner Construction Company announced that the Third 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 1432. This represents a 0.77% quarterly increase from the Second Quarter 2024 and a 3.64% yearly increase from the Third Quarter 2023

“Material prices over the past two quarters of 2024 remain stable overall. Mechanical and electrical equipment continue to experience longer lead times as well as continued cost increases due to high demand.,” said Attilio Rivetti, the Turner vice president responsible for compiling the Cost Index. Attilio continued, “Projects across various geographic regions are experiencing cost increases at higher rates than others due to localized robust construction activity in these markets as well as driven by numerous mega projects underway.”

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.