In Long Beach, construction cost ranges for both residential and non‑residential projects have been influenced by regional trends in Southern California. The Los Angeles–Long Beach metro area saw a sharp quarterly spike of approximately 6 % in construction costs in Q1 2025—the steepest in over a decade—with year‑over‑year increases of around 10.5 % driven by post‑wildfire rebuilding, labor demand, and tariffs on materials. These dynamics suggest elevated cost baselines for Long Beach projects during 2024–2025. While exact figures vary by project type, contractors should anticipate above‑average cost escalation compared to pre‑pandemic norms.
Material cost inflation across California in 2025 is estimated at roughly 4–5 % for residential and non‑residential work, with Long Beach experiencing an additional 10–15 % premium due to urban logistics and port‑related delivery costs. This makes Long Beach a higher‑cost market relative to statewide averages.
Compensation costs—including wages and benefits—for private‑industry workers in the Los Angeles–Long Beach area rose approximately 4.2 % over the year ending December 2024, with wages and salaries up about 4.3 %. By September 2025, growth had moderated to around 3.4 % for both total compensation and wages. These trends reflect a cooling labor cost environment, though skilled trade labor and subcontractor rates remain elevated due to ongoing demand and localized shortages.
Equipment rental in Long Beach follows regional pricing patterns. For example, typical daily, weekly, and monthly rates for telehandlers, boom lifts, scissor lifts, and skid steer loaders are available through rental providers. While specific dollar amounts are not listed here, contractors should expect equipment hire costs to align with Southern California urban market rates, with premiums for delivery, mobilization, and tight site access.
Long Beach’s construction economy in 2025 is shaped by a combination of elevated rebuilding demand, moderated labor cost growth, and persistent material inflation. The city’s infrastructure investment—through its multi‑year Capital Improvement Plan (CIP) and the Elevate ’28 program—signals strong public works activity, which may compete for labor and equipment resources. Contractors and construction managers should plan for tight resource markets, anticipate fee adjustments, and build in contingencies for material and labor volatility.
