Construction Cost Overview – Raleigh

Construction Cost Ranges (2024–2025)

In Raleigh, general construction cost ranges for commercial and multifamily projects during 2024–2025 remain elevated due to sustained demand and supply chain pressures. These ranges serve as planning benchmarks for contractors and construction managers, guiding early-stage budgeting and feasibility assessments. Detailed cost tables are available in linked spoke pages for specific project types and scopes.

Labor Cost Trends

Trade labor, journeyman, and subcontractor rates in the Raleigh–Durham region have reached record highs, driven by tight labor markets and competition for skilled workers. Hourly construction wages are at decade-high levels, reflecting regional labor shortages and upward pressure on project labor budgets.

Equipment Hire Costs

Equipment rental rates—whether daily, weekly, or monthly—are influenced by regional demand, availability, and delivery logistics. While exact figures vary by equipment type, contractors should anticipate premium pricing for specialized machinery and plan accordingly in their cost models.

Local Cost Drivers

• Permits and Development Fees: Raleigh’s development fee guide and permit fee schedules are publicly available and provide estimates for plan review, building, and trade permits. Administrative fees apply for extra inspections, re-reviews, or working without a permit, and voided permits may incur minimum administrative charges. These factors can significantly affect project timelines and budgets.
• Site Access Requirements: The Unified Development Ordinance (UDO) specifies driveway widths, spacing, and access standards for residential, mixed-use, and industrial sites. Compliance with these standards may require design adjustments or additional site work.
• Material Delivery and Logistics: Delivery costs are influenced by traffic patterns, site access constraints, and staging limitations in urban areas. Efficient coordination with suppliers and logistics planning is essential to control these costs.

Current Construction Economics in Raleigh

Raleigh’s construction sector continues to benefit from strong economic momentum, with major developments underway and robust industrial demand. The Highline Glenwood tower—a 37‑story residential project—began construction in mid‑2025 and is expected to complete by 2028, signaling sustained confidence in downtown development.

Industrial real estate remains active: as of Q2 2025, asking rents rose year‑over‑year by over 8%, while under‑construction inventory expanded significantly. Vacancy rates have increased modestly, but demand for high‑quality space continues to support pricing power.

These trends underscore a dynamic construction environment in Raleigh, where labor constraints, rising material and equipment costs, and strong development pipelines converge to shape project economics.