Some states saw an 11% spike in construction wages this year.
That may sound like a local trend—but it could raise your entire project budget if you build in the wrong region.2
Construction Costs Are Climbing—But Not Everywhere
The labor market is shifting. In April 2025, average construction wages rose as much as 11% year-over-year, while some states actually saw wage declines of up to 3%.3
Highest YoY wage increases:
-
Alaska
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New Mexico
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Louisiana
States with declining wages:
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South Dakota
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Mississippi
These trends highlight the growing importance of site selection as a cost-saving strategy.
What That Means for Developers
Wage increases don’t just raise labor costs—they often signal tightening labor markets, which can cause:
- Schedule delays
- Subcontractor shortages
- Budget overruns
Increased construction wages often reflect tight labor markets, which can contribute to rising project costs and extended build times.
~ National Association of Home Builders (NAHB), June 2025
How BASE4 Helps You Navigate Cost Pressures
When construction costs rise, every decision matters. BASE4 helps you:
- Choose the right site with better cost predictability.
- Explore construction methods to help you build more efficiently and cost-effectively.
- Provide cost-efficient, permit-ready design sets.
- Tailor the design approach based on real wages and material trends.
We bring architecture, engineering, and interior design together in-house to help you move fast and save more.
Source:
1.NAHB Economics
2.Eye on Housing article, “States with Highest and Fastest Rising Construction Wages”, June 2025
3.Bureau of Labor Statistics (BLS), Current Employment Statistics (CES)
Thank you,
Blair Hildahl
Blair@hotelsuniversity.com
608.304.5228