Boise’s construction cost index remains below the national average, reflecting moderate regional pricing pressure. Relative cost indices place Boise at approximately 0.88 compared to the U.S. baseline, indicating cost-efficiency in labor and materials compared to higher-cost metros ([roofobservations.com](https://roofobservations.com/relative-construction-costs-by-state/?utm_source=openai)). However, recent trends show upward pressure: national construction costs rose nearly 4% year‑over‑year in early 2025, with Idaho experiencing similar inflationary impacts ([h2developmentgroup.net](https://www.h2developmentgroup.net/construction-insights/boise-real-estate-market-july-2025?utm_source=openai)).
In commercial and industrial sectors, quoted construction costs range broadly depending on project type—ranging from junior anchor box developments to multi‑tenant pad sites—highlighting variability based on complexity and scale ([idahobusinessreview.com](https://idahobusinessreview.com/2025/07/07/idaho-big-box-construction-sustainability-trends/?utm_source=openai)).
Boise continues to face a skilled labor shortage, with Idaho short approximately 5,000 construction workers, driving labor cost increases of around 4% annually ([h2developmentgroup.net](https://www.h2developmentgroup.net/construction-insights/boise-real-estate-market-july-2025?utm_source=openai)). Wage data from mid‑2023 shows trade-specific mean hourly rates—for example, carpenters at about $23.36/hr, electricians at $26.51/hr, and equipment operators at $27.59/hr—providing a baseline for estimating journeyman and subcontractor rates ([bls.gov](https://www.bls.gov/regions/west/news-release/2024/occupationalemploymentandwages_boisecity_20240718.htm?utm_source=openai)).
Equipment and machinery costs have contributed to rising material input prices. In mid‑2025, residential building material input prices rose 0.7% in a single month, with services (including equipment hire) up 3.3% year‑over‑year ([bcaswi.org](https://www.bcaswi.org/metals-and-equipment-drove-material-prices-higher-in-june/?utm_source=openai)). This reflects growing demand and tariff‑driven cost increases for metals and parts.
As of mid‑2025, supply chain reliability has improved, with about 85% of builders receiving materials on time, easing some cost volatility ([h2developmentgroup.net](https://www.h2developmentgroup.net/construction-insights/boise-real-estate-market-july-2025?utm_source=openai)). Yet, high interest rates and rising wages (15–20% increases in some sectors) continue to challenge project budgets ([idahobusinessreview.com](https://idahobusinessreview.com/2025/07/07/idaho-big-box-construction-sustainability-trends/?utm_source=openai)). Boise’s retail vacancy remains low, indicating sustained demand for construction despite cost pressures ([idahobusinessreview.com](https://idahobusinessreview.com/2025/07/07/idaho-big-box-construction-sustainability-trends/?utm_source=openai)).
