Turner Construction Company has reported that construction costs in the U.S. non-residential market continued their upward trend in the second quarter of 2025. According to the latest Turner Building Cost Index, costs rose to a value of 1476, marking a 1.17% increase over the first quarter of 2025 and a 3.82% jump compared to the same period last year.

“We are seeing increased trade contractor competitiveness as market activity varies across regions. Yet overall, the U.S. construction market remains active and continues to have strong momentum. This offers meaningful opportunities for our preconstruction, procurement, and operations teams to lead with innovation and strengthen strategic partnerships with trade contractors, suppliers, and clients to achieve project goals,” said Attilio Rivetti, the Turner vice president who oversees the Cost Index.

Turner’s Building Cost Index has been a trusted industry benchmark for over eight decades. The index reflects a combination of factors that influence national building costs, such as fluctuations in labor rates and productivity, shifts in material prices, and the broader competitive landscape in which contractors operate.

While the index provides valuable insights for the overall market, Turner emphasizes that these trends may not always mirror regional dynamics. Local construction conditions can vary widely due to labor availability, supply chain issues, or differing levels of market activity in specific states or cities.

Despite this variability, the steady rise in costs underscores the resilience of the construction sector as it navigates economic pressures, evolving project demands, and a continued focus on delivering projects on time and within budget. Turner’s leadership believes that strong collaboration across the supply chain and early planning will help mitigate challenges related to material costs and labor supply in the months ahead.

As the industry looks toward the second half of the year, Turner plans to continue leveraging its long-standing relationships with trade contractors and suppliers to manage cost pressures and maintain high standards of delivery for clients nationwide.

Originally reported by Turner Construction.