Cost trends for structural solutions
The chart below shows how costs for common structural solutions have increased over the last four years in the United States. Across all solutions, costs are being compared to a baseline of 2020 (2020 = 100.0). Mass timber is growing in popularity due to lower embodied carbon and quicker construction compared to traditional steel and concrete structures despite higher upfront costs. Steel, precast, and mass timber cost trends below include fabrication costs. All cost trends exclude installation labor.
Cost increase from 2020 to 2024
The chart below shows how costs for common structural solutions have increased over the last four years in the United States. Across all solutions, costs are being compared to a baseline of 2020 (2020 = 100.0). Mass timber is growing in popularity due to lower embodied carbon and quicker construction compared to traditional steel and concrete structures despite higher upfront costs. Steel, precast, and mass timber cost trends below include fabrication costs. All cost trends exclude installation labor.
Cast in place and precast concrete costs have followed similar trends over the last four years – steadily increasing from 2020 to today. The largest increase in concrete costs occurred from 2021 to 2023. In that 24-month period, both cast in place and precast concrete costs increased by approximately 23%. In comparison, steel and mass timber both increased by over 20% from 2020 to 2021.
Steel
Precast concrete
Mass timber
Cast in place concrete
Steel increased another 20% from 2021 to 2022, while mass timber costs remained steady. Today steel is approximately 50% more expensive than in 2020, concrete is 33% (cast in place) to 38% (precast) more expensive than in 2020, and mass timber is roughly 22% more expensive than in 2020.
Mass timber, when combined with sustainable forestry, has the lowest embodied carbon among discussed solutions, but it isn’t suitable for all projects due to height and story limitations. However, state building codes are evolving to permit taller mass timber buildings. These taller structures offer schedule advantages and cost savings, making mass timber competitive with steel and concrete. For more on viability, cost, schedule, and embodied carbon across structural solutions, please reach out.
Steel increased another 20% from 2021 to 2022, while mass timber costs remained steady. Today steel is approximately 50% more expensive than in 2020, concrete is 33% (cast in place) to 38% (precast) more expensive than in 2020, and mass timber is roughly 22% more expensive than in 2020.
Mass timber, when combined with sustainable forestry, has the lowest embodied carbon among discussed solutions, but it isn’t suitable for all projects due to height and story limitations. However, state building codes are evolving to permit taller mass timber buildings. These taller structures offer schedule advantages and cost savings, making mass timber competitive with steel and concrete. For more on viability, cost, schedule, and embodied carbon across structural solutions, please reach out.
Cost escalation for common structural materials
Nationwide total construction material cost escalation from 2020 to 2024 is approximately +40% per Federal Reserve Bank of St. Louis (FRED) data. Fabricated structural steel costs have outpaced that at +50%, but we are projecting a slight decrease in steel costs through the end of 2024.
Concrete and timber have experienced a lower escalation at +33% and +22% respectively. We are projecting both concrete and timber costs to increase slightly through the end of 2024.
Cost escalation for common structural materials
Nationwide total construction material cost escalation from 2020 to 2024 is approximately +40% per Federal Reserve Bank of St. Louis (FRED) data. Fabricated structural steel costs have outpaced that at +50%, but we are projecting a slight decrease in steel costs through the end of 2024.
Concrete and timber have experienced a lower escalation at +33% and +22% respectively. We are projecting both concrete and timber costs to increase slightly through the end of 2024.