Our Central region experienced an average year-over-year construction cost increase of 4.41% (above the national average of 4.39%). These cities include Austin (4.18%), Chicago (4.17%), Dallas (4.99%), Denver (4.63%), and Minneapolis (4.10%).
A consistent drive on cost control, technology integration, and strategic partnerships defines construction activity across our Central region. Developers are embracing design-build delivery and advanced tools to accelerate timelines and manage risk, while sustainability and efficiency remain central themes in both new builds and adaptive reuse projects.
Growth across the region is propelled by infrastructure upgrades and industrial investment, particularly in high-growth metros like Austin and Dallas-Fort Worth. Population growth in Austin and Denver fuels housing and mixed-use development, while Chicago’s stability and Minneapolis’ balanced conditions highlight opportunities for strategic remodels and adaptive reuse. Across the region, workforce housing and suburban resilience are emerging as key drivers of market stability.
Despite steady demand and strong market fundamentals, the industry faces persistent challenges. Skilled labor shortages continue to pressure project schedules, compounded by permitting delays and elevated material costs. Long lead times and financing hurdles are shaping procurement strategies as developers seek to mitigate risk in a constrained environment.
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