Turner Construction Company announced that construction costs continued to climb in the third quarter of 2025, with the Turner Building Cost Index reaching 1493, reflecting a 1.15% increase from the previous quarter and a 4.19% rise compared to the same period last year.
The Turner Building Cost Index measures non-residential construction costs across the United States and is one of the industry’s most closely watched indicators of cost trends.
“Activity remains strong, with data centers and industrial projects continuing to be major drivers of demand, while healthcare, sports, and aviation markets remain very active,” said Attilio Rivetti, the Turner vice president responsible for compiling the Cost Index.
Turner’s index, which has been produced for over 80 years, tracks changes in construction pricing driven by factors such as labor rates, material costs, and overall market competitiveness. These insights are based on data from projects nationwide and serve as a barometer for understanding long-term cost trends in the non-residential building sector.
While the third-quarter rise is moderate compared to earlier years of post-pandemic volatility, analysts note that steady demand in key sectors—particularly data centers, industrial facilities, and healthcare infrastructure—continues to apply upward pressure on both labor and material costs.
Regional variations persist, as certain markets face sharper increases tied to local labor shortages or supply chain constraints. Turner emphasizes that its national index “may or may not reflect regional conditions in any given quarter,” as the measure is designed to capture nationwide averages rather than localized fluctuations.
The report also highlights that although some material prices have stabilized, labor availability remains tight in specialized trades, including electrical, mechanical, and steel work—trades heavily utilized in data center and industrial projects.
With major private investments in technology infrastructure and industrial manufacturing expected to continue into 2026, Turner anticipates sustained cost pressures through the coming year.
Turner Construction’s Building Cost Index remains a critical benchmark for contractors, developers, and public agencies planning new projects, providing insight into pricing trends and economic momentum across the construction landscape.
Originally reported by Turner Construction Company.
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