Although costs for construction materials, equipment, and labor continue to climb, the rate of increase has slowed compared to previous years.
Gordian Unveils 2025 RSMeans Data, Highlighting Construction Cost Trends
As a leading provider of data-driven solutions for the building lifecycle, Gordian has released its latest 2025 RSMeans Data, offering a detailed look into the evolving landscape of construction costs. This data, updated quarterly, provides insights into industry cost trends, including fluctuations in labor, materials, and equipment expenses.
Heading into 2025, Gordian’s analysis reveals that construction costs are continuing to rise at a pace slightly exceeding inflation, with labor wages increasing by an average of 4.1% over the past year.
Construction Cost Insights:
-
Labor Costs: Wages in the construction sector have risen by an average of 4.1% year-over-year, a key factor for project managers navigating budgets.
-
Material Costs: Material prices, which saw an 8.7% spike in 2024, have now slowed to a 3.1% increase YoY, indicating reduced volatility. Approximately 50% of materials experienced a price shift of ±5% compared to the previous year.
-
Equipment Costs: Equipment expenses saw an average 4.5% increase YoY, down from the 7% hike in 2024, with 68% of equipment costs fluctuating by more than ±5%.
Key Takeaways:
-
Market Stability: The 2025 data suggests a more stabilized market compared to previous years.
-
Quarterly Updates: Gordian provides up-to-date insights with quarterly City Cost Index (CCI) updates across multiple cost categories.
-
Advanced Cloud Capabilities: The Gordian Cloud Platform streamlines planning, estimating, and procurement throughout the construction lifecycle.
-
More Frequent Data Releases: Since Q1 2024, RSMeans Data Online has shifted from annual updates with quarterly indexing to a full cost data refresh every quarter, providing real-time pricing accuracy for industry professionals.
With these comprehensive insights, construction professionals can better anticipate cost trends, plan effectively, and optimize budgeting strategies for the year ahead.
