“There’s no shortage of uncertainty in today’s marketplace,” says Paul Brussow, President of Rider Levett Bucknall North America. “But construction is thriving in an oasis, offering hope while the broader economy searches for its own. When the conditions ahead are unfamiliar, we recommend construction leaders keep a close eye on the changes around them and consult the best available data to make well-informed decisions. In this lens, we hope you find this report a useful tool as you navigate the uncharted waters ahead.”
Encouraging Trends in Costs and Employment
Construction cost growth stabilized between Q1 and Q2, with an average increase of just 0.15%. Year-over-year cost changes are showing signs of moderation, dropping from 5.42% in April 2024 to 4.4% in April 2025. Meanwhile, construction unemployment fell sharply to 3.5% in April, and ENR’s Construction Industry Confidence Index reached its highest level in three years.
Navigating Headwinds
Challenges remain: construction-put-in-place dipped below estimates in April, architectural billings are in decline, and uncertainty around tariffs and immigration policy continues to impact investor confidence. Private equity investment is also on pause, with firms waiting for clarity before taking on new risk.
Looking Ahead
Despite these challenges, key segments like data centers and industrial manufacturing are driving growth, and construction inflation is slowing. But with today’s unpredictable market dynamics, staying informed is critical. Leaders must monitor labor policy, economic signals, and industry data closely.
Our Quarterly Construction Cost Report is designed to help you navigate these shifting conditions with confidence. Explore the full report for detailed analysis and insights into what’s ahead for construction costs and market trends.
Curious about the specifics of your region? See below for hyperlinks to region-specific insights from our report.
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