Our Central region experienced an average year-over-year construction cost increase of 4.02% (below the national average of 4.50%). These cities include Austin (2.36%), Chicago (5.41%), Dallas (4.30%), Denver (4.54%), and Minneapolis (3.50%).
A shared focus on innovation, resilience, and strategic adaptation defines construction activity across our Central region. These cities are embracing technology at scale, with AI, BIM, drones, and CRM platforms becoming essential tools for improving project efficiency and managing risk. Sustainability is no longer optional—energy-efficient systems, LEED certification, and smart infrastructure are now standard features in both new builds and adaptive reuse projects.
Despite strong backlogs and steady investment, the industry faces persistent risks. Labor shortages continue to challenge project timelines, driven by workforce aging and immigration enforcement. Rising tariffs on key materials like steel and copper are inflating costs, while long lead times and municipal delays are straining supply chains.
Economic momentum is fueled by federal infrastructure funding, particularly through the One Big Beautiful Bill Act (OBBBA), which is accelerating industrial and public-sector projects. Population growth in cities like Austin and Denver is driving demand for housing and mixed-use developments, while Chicago and Dallas are seeing steady expansion in healthcare and industrial sectors.
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