Building Costs Increase in the First Quarter of 2024 Driven by Mega Projects

Long lead times continue to be an issue for some building components.

Turner Construction Company announced that the First 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 1408. This represents a 0.93% quarterly increase from the Fourth Quarter 2023 and a 4.37% yearly increase from the First Quarter 2023.

“Mega projects in the advanced technology markets across the United States continue to have a significant draw on the workforce. Workforce development programs are bringing diverse and young labor into the skilled trades which is a great sign for the future of our industry,” said Attilio Rivetti, the Turner vice president responsible for compiling the Cost Index. Attilio continued, “There has been a stabilization of most material prices with exception to copper and aluminum where we are experiencing increases since February 2024. While lead times for mechanical and electrical equipment may be somewhat shorter than previous months, they are still quite long and need to be a focus for project schedules.” 

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.