Building Costs Increases Slow in the First Quarter of 2023

April 20, 2023

Availability of skilled labor continues to be an issue in the construction industry.

Turner Construction Company announced that the First 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 1349. This represents a 1.28% quarterly increase from the Fourth Quarter 2022 and a 7.49% yearly increase from the First Quarter 2022.

“A shortage of skilled labor in the construction industry is contributing to an increase in labor rates. In addition, trade contractors are being selective in taking on work to maintain balance with available labor,” said Attilio Rivetti, the Turner vice president responsible for compiling the Cost Index. Attilio continued, “Increasing cost of fuel was a driver in cost increases in 2022. During the first quarter of 2023, reduction in fuel costs have helped stabilize transportation costs.” 

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 of these factors into account.

Click here to view the First Quarter building cost index.

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