Construction Market Report Fall 2024

Although the construction confidence index is below 50, this latest survey was done just prior to the
mid-September federal rate cut of 1/2 a percentage point. Many industry leaders have since turned more optimistic about 2025 and beyond as further interest rate cuts are anticipated over the next 12 months. The commercial sector should begin to rebound after several sluggish quarters. Labor will continue to be an issue as the demand for quality workers lingers on.

Many companies that are wanting to grow are finding difficulties locating the quality workers needed to meet their growth expectations. This will drive wages higher. Labor productivity has slowed due to the rate of retiring workers who tend to be more experienced and productive compared to new workers just starting in the industry. The composite material cost index has risen a modest 3.4% over the past 12 months. We anticipate construction costs to rise 3% – 6% over the next 12 months.

Download the full Fall 2024 Market Conditions Report below for more insights and detailed information on today’s construction market.