Skilled Labor Costs Drive Increases in Building Costs During the Fourth Quarter of 2023

Turner Construction Company announced that the Fourth Quarter 2023 Turner Building Cost Index—which measures costs in the non-residential building construction market in the United States—had increased to the value of 1395. This represents a 1.01% quarterly increase from the Third Quarter 2023 and an 4.73% yearly increase from the Fourth Quarter 2022.

“Economic conditions, interest rates, and market demand contribute toward current strong market conditions regionally and skilled labor concerns for several impacted areas. Trade contractors have experienced wage rate impacts to attract and retain skilled labor in several regions,” said Attilio Rivetti, the Turner vice president responsible for compiling the Cost Index. Attilio continued, “We continue to see a normalization in most material prices including steel, concrete, aluminum, and copper.”

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.