Building Cost Projections
COST PROJECTIONS BEGINNING FY27
THE PAST YEAR 2025
Nationally 2025
The construction market is settling into a more predictable and opportunity-driven phase. Pricing pressures are better understood, productivity gains are improving efficiency and owners have stronger footing to plan with confidence. (McCownGordon Construction Economic Report 1st quarter 2026)
Tariffs are effecting supply chains and are unpredictable, but appear to be embedded into baseline pricing . Lumber prices appear to be declining, while volatility is seen in the metals market energy inputs logistics cost and labor availability.
Locally 2026
We are experiencing more contractors bidding on building construction projects as work loads are declining. This has State revenues are predicted to decrease
FORCAST FOR FY27
State revenues are predicted to decrease, therefore less money will be available for construction projects. We are still seeing long lead times for generators increasing delays in delivery of rooftop units (3-6 tons), water heaters and bus ducts.
Labor workforce shortages are still limiting construction capacity, but with reduced number of construction starts, this should ease in FY27. Inflation rate increases for construction materials have slowed, this being reflected in the projections below.
Cost Projections
|
Yearly Cost Projections
|
Monthly Cost Projections from FY27 |
|
|
FY27 |
3.00% |
0.002500 / month (3% / 12 months). |
|
FY28 |
7.00% |
0.002916 / month (7% / 24 months) |
|
FY29 |
9.00% |
0.002500 / month (9% / 36 months) |
|
FY30 |
12.00% |
0.002500 / month (12% / 48 months) |
|
FY31 |
14.00% |
0.002333 / month (14% / 60 months) |
These projections were compiled from multiple sources including AGC of America, US Bureau of Labor Statistics and Engineering News Record and Turner Construction Cost Index
Historical Cost Indexes
|
Year ending in January |
Average Index |
% change |
Year beginning in January |
Average Index |
% change |
|
2025 |
1485 |
4.1 |
2014 |
902 |
4.40 |
|
2024 |
1462 |
3.9 |
2013 |
864 |
4.10 |
|
2023 |
1373 |
6.0 |
2012 |
830 |
2.10 |
|
2022 |
1295 |
8.0 |
2011 |
812 |
1.60 |
|
2021 |
1199 |
1.9 |
2010 |
799 |
-4.00 |
|
2020 |
1177 |
1.8 |
2009 |
832 |
-8.40 |
|
2019 |
1156 |
5.5 |
2008 |
908 |
6.30 |
|
2018 |
1096 |
5.60 |
2007 |
854 |
7.70 |
|
2017 |
1038 |
5.00 |
2006 |
793 |
10.60 |
|
2016 |
989 |
4.80 |
2005 |
717 |
9.50 |
|
2015 |
943 |
4.50 |
2004 |
655 |
5.40 |
(The above historical cost data was obtained at www.turnerconstruction.com/cost-index.)
