Construction Cost Overview – Albuquerque

Construction Cost Ranges (2024–2025)

In Albuquerque, general construction cost ranges for commercial and institutional projects have trended upward through 2024 and into 2025, reflecting national patterns of rising material and labor costs. While specific dollar figures are reserved for detailed cost tables, contractors and construction managers should anticipate elevated baseline costs driven by volatile input prices and regional demand pressures.

Nationally, the Turner Building Cost Index rose by approximately 3.6% year‑over‑year in Q1 2025, with a quarterly increase of around 1.2%—a useful benchmark for Albuquerque’s non‑residential construction market.

Labor Cost Trends

Skilled trade labor remains under pressure. Nationally, journeyman electricians, plumbers, and carpenters saw wage increases of 5–8% in late 2025, with overtime and burden costs further elevating effective labor rates. Contractors should account for 10–15% of labor hours at premium rates due to schedule pressures and labor shortages.

Local data for Albuquerque shows architecture and engineering professionals earning average hourly wages in the $60‑plus range, with electrical and nuclear engineers commanding higher rates—indicative of the broader skilled labor market dynamics in the region.

Equipment Hire Costs

Equipment rental rates have increased nationally by 5–8% in 2025, with specialty equipment such as large excavators and cranes seeing even higher increases in tight markets. Contractors in Albuquerque should obtain current rental quotes rather than relying on outdated estimates.

Local Cost Drivers

• Permitting and Plan Review: Albuquerque’s permit fees are based on project valuation and square footage. Expedited plan review (FasTrax) costs approximately three times the standard review fee, excluding zoning and hydrology charges.
• Barricade and Excavation Permits: Excavation permits include one free day of single‑lane barricading; additional barricading and restoration fees apply based on area and duration.
• Site Access and Restoration: Excavation work on arterial or collector roadways may trigger restoration fees calculated per square yard, plus additional charges for curb cuts, drive pads, sidewalks, and ADA ramps.
• Material Delivery: Albuquerque’s geography and infrastructure can influence delivery logistics and costs, especially for heavy or oversized materials requiring special handling or staging.

General City Context

Albuquerque serves as New Mexico’s principal economic center, with robust activity in construction, technology, healthcare, and education. The city’s diversified economy supports ongoing demand for commercial, institutional, and mixed‑use development, including higher education projects and redevelopment initiatives.

Current Construction Economics in Albuquerque

Locally, higher education institutions are investing in new construction projects in 2025, signaling sustained demand in the institutional sector. At the same time, national trends—such as persistent skilled labor shortages, rising material input costs, and insurance premium increases—are influencing local project economics. Contractors should monitor these dynamics closely when estimating and bidding in the Albuquerque market.