The outlook for non-residential construction in early 2025 remains steady, with modest cost increases across all regions and continued stability in labor and material availability. That said, emerging shifts in global trade policy and evolving tariff measures are beginning to ripple through the supply chain. While most markets reported improved sourcing and fewer constraints, Mortenson anticipates cost volatility in select material categories as trade partners adjust to the new landscape. Elevated planning activity and firm demand in several regions continue to support a balanced start to the year.
Non-residential construction costs tracked by the Mortenson Quarterly Cost Index rose 2.2% nationally in the 1st quarter of 2025. Mortenson continues to advise customers to approach project starts with a measured mindset, balancing opportunity with preparedness for ongoing change. Read the full report for more details.
View the Q1 2025 Construction Cost Index report for specific regions across the country:
The Mortenson team is available for your questions around this or other project-related issues; please reach out to Mortenson for more information.
