In Durham, USA, construction costs for commercial and residential projects in 2024–2025 are influenced by national inflation, rising material prices, and labor shortages. Contractors and construction managers should anticipate increased project budgets due to wage hikes, supply chain issues, and regulatory changes.
In Durham, trade labor, journeyman, and subcontractor rates are rising due to a tightening skilled labor market. The shortage of skilled trades—exacerbated by an aging workforce—continues to drive wage inflation. Companies are investing in retention and training to secure qualified workers, further elevating labor costs.
Equipment hire rates—whether daily, weekly, or monthly—are increasing in line with broader inflation and energy costs. Contractors should expect higher baseline rates for plant and machinery, with longer-term hires offering better value but still subject to upward pressure from fuel and maintenance cost inflation.
Key cost drivers in Durham include permit and planning fees, which vary based on project complexity and location. Site access constraints, especially in historic or congested areas, can increase logistics and setup costs. Material delivery costs are also elevated by regional transport and handling challenges.
Nationally, US construction activity is under strain. Commercial construction has dropped to its lowest level since 2014, with a 21% year-on-year decline in Q3 2025, driven by rising costs, labor shortages, and economic uncertainty. The Purchasing Managers’ Index (PMI) for construction remains in contraction, signaling caution among clients and developers. Contractors in Durham should plan proactively, lock in pricing where possible, and build contingency buffers into project budgets.
