El Paso’s construction sector is navigating a complex economic environment. Residential building permits have declined, with new home construction slowing due to high interest rates, expensive land, elevated taxes, and labor shortages. Construction job growth slowed from 1% in early 2025 to approximately 0.6% by year-end, while unemployment edged above state and national averages. These trends reflect broader economic pressures affecting project timelines and cost planning.
Local economic indicators also show weakened residential permit activity and rising average values per permit, signaling tighter margins and heightened financial strain for contractors and developers.
Construction cost ranges in El Paso vary by project type and complexity. For example, warehouse shell construction using steel framing or tilt‑up concrete systems typically falls within mid‑range per‑square‑foot brackets, excluding interior build‑out and MEP systems. These ranges serve as a baseline for early-stage budgeting and bid preparation.
Labor rates in El Paso reflect both local market conditions and national wage pressures. Roofing labor ranges from entry‑level to supervisory levels, while lighting installation labor spans from entry‑level electricians to experienced professionals. These rates are essential for trade‑specific cost modeling and bid accuracy.
Equipment rental costs, such as concrete pump hire, vary by duration and equipment type. Daily, weekly, and monthly rate structures are influenced by pump capacity and project requirements. Contractors should account for delivery, fuel surcharges, cleaning, and damage waivers when estimating equipment hire budgets.
El Paso’s construction sector continues to face workforce constraints, with labor shortages driven by demographic shifts, immigration policy uncertainty, and rising wage expectations. Builders report that “cheap labor has vanished,” contributing to higher labor costs and extended project timelines. Permit processing capacity is also strained, as planning and inspections departments are under‑resourced despite permit revenue being diverted to general funds.
