Turner Building Cost Index Rises 5.2% Year Over Year in Q2
The Turner Building Cost Index increased by 5.2% year over year during the second quarter of 2026, signaling continued annual construction cost inflation despite a temporary monthly decline earlier this summer. The index also rose 1.4% from the first quarter as high-growth sectors like data centers and advanced manufacturing drove demand for labor and materials. Turner Construction's vice president noted that skilled Mechanical and Electrical labor remains in short supply, complicating project planning amid global uncertainty and shifting tariff policies. Recent fluctuations in construction costs have made it more challenging for contractors to estimate project expenses accurately.