Turner Construction Company revealed that the Turner Building Cost Index for the Fourth Quarter of 2024 has risen to 1442, reflecting an uptick in costs within the non-residential building construction market in the United States. This marks a 0.70% increase from the Third Quarter of 2024 and a 3.33% rise compared to the same quarter in 2023.

"Construction activity overall remained relatively stable through the fourth quarter for 2024," said Attilio Rivetti, Vice President at Turner and the individual responsible for compiling the Cost Index. He further commented, “The construction industry in the United States continues to exhibit resilience, with sustained activity levels and strong engagement from trade partners.”

Turner Construction has been preparing its construction cost forecasts for over 80 years, tracking vital trends in building costs and prices through the Turner Building Cost Index. It is important to note that while the index serves as a broad measure of the nationwide non-residential building construction market, the actual building costs reflected in the index might vary from regional conditions in any specific quarter. The index’s data is derived from several nationwide factors such as labor rates, productivity, material prices, and overall competitive market conditions.

Due to its comprehensive approach, the Turner Building Cost Index is distinct from other published indices. Many other indices typically do not account for all the same factors, which is why Turner’s index provides a more nuanced and specific overview of construction costs across the United States. The sustained rise in the cost index suggests a market with continued pressure from inflation, labor, and material costs, despite the relatively steady pace of construction activity.

As Turner notes, the Cost Index is critical for assessing long-term construction trends and understanding the broader economic forces at play in the non-residential building industry. While the industry remains robust, regional variations and specific market dynamics can affect the exact costs experienced by contractors and developers in different areas.

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