Construction Cost Hub – Omaha

Overview: Omaha Construction Cost Environment (2024–2025)

Omaha’s construction market in 2024–2025 reflects moderate labor cost growth, rising equipment rental rates, and material price volatility driven by national trends. Contractors and construction managers should anticipate upward pressure on input costs, particularly for steel, aluminum, and concrete-related materials, influenced by tariffs and supply chain constraints. This environment underscores the importance of building escalation clauses and contingency buffers into bids.

National data shows construction input prices rose approximately 6% year-over-year in 2025, with steel up over 7%, aluminum over 3%, and concrete pipe over 10%—factors that directly impact Omaha projects. Nonresidential input prices increased around 1.6% year-over-year, signaling sustained cost pressure in commercial sectors.

Key Cost Drivers and Local Considerations

• Labor Cost Trends: In Omaha, construction and extraction trades averaged just under the national mean hourly wage in May 2024, with construction and extraction at approximately $29/hour and installation, maintenance, and repair at about $28.75/hour. These figures provide a baseline for local labor budgeting.
• Equipment Hire Costs: Equipment rental rates continue to climb. Nationally, weekly rates for dozers, crawler excavators, and forklifts have surged—some by over 25%—while compact loaders and telehandlers also saw notable increases. Expect similar upward trends in Omaha’s rental market.
• Local Cost Drivers: Omaha-specific factors include permit fees, site access logistics, and material delivery distances. Large-scale projects—such as the Mutual of Omaha Headquarters Tower and the Omaha Central Public Library—highlight the need to account for urban site constraints, staging, and utility coordination.
• Economic Context: Omaha’s construction sector is influenced by broader economic dynamics, including tariff-driven material cost increases and tight labor markets. Contractors should monitor local permit processing times and infrastructure developments that may affect project timelines and costs.