Construction Cost Hub – Saint Paul

Overview: Construction Economics in Saint Paul (2024–2025)

Saint Paul’s construction sector is navigating a complex economic landscape. Multifamily housing permits have dropped sharply—metro-wide apartment permits fell from over 15,000 in 2022 to around 5,000 in 2023, with continued decline into 2024. High per-unit costs for midrise buildings have made many projects financially unfeasible without sales prices exceeding $400,000 or public subsidies. This slowdown is compounded by rising interest rates and elevated construction costs, which have deterred developers and slowed new starts.([axios.com](https://www.axios.com/local/twin-cities/2025/06/09/twin-cities-apartment-construction-cost-crisis?utm_source=openai))

At the same time, major infrastructure and mixed-use developments are advancing. Projects like Highland Bridge and The Heights are progressing, and data center and airport expansions are expected to drive growth in 2026.([finance-commerce.com](https://finance-commerce.com/2024/12/construction-projects-to-watch-in-2025/?utm_source=openai))

Key Cost Considerations for Contractors and Construction Managers

Construction Cost Ranges (2024–2025)

Construction cost ranges in Saint Paul vary by project type and scale. Midrise residential developments face high per-unit costs, while large-scale infrastructure and mixed-use projects may benefit from economies of scale. These cost ranges are best explored in dedicated cost tables on project-specific pages.

Labor Cost Trends

Labor costs—including trade labor, journeyman, and subcontractor rates—are influenced by prevailing wage requirements on public projects. While specific rates vary by trade and scope, contractors should anticipate upward pressure on labor costs due to regulatory and market dynamics.

Equipment Hire Costs

Equipment hire costs—daily, weekly, or monthly—are shaped by prevailing wage rules and operational cost surveys. For example, minimum hourly truck rental rates in Region 5 (which includes Saint Paul) are certified annually and reflect both equipment operation and driver wage components.([dli.mn.gov](https://www.dli.mn.gov/business/employment-practices/prevailing-wage-region-5-minimum-truck-rental-rates?utm_source=openai))

Local Cost Drivers

• Permits and Assessments: Projects like Minnesota Street Reconstruction Phase 2 involve assessments per frontage foot, which were recently reduced significantly.([stpaul.gov](https://www.stpaul.gov/projects/public-works/pw2024minnesotast2?utm_source=openai))
• Site Access and Delivery: Urban constraints, traffic management, and staging in downtown Saint Paul can elevate logistics costs.
• Material Delivery: Delivery costs are influenced by regional truck rental rates and prevailing wage mandates.

General City Context

Saint Paul is investing in long-term infrastructure improvements through initiatives like the “Common Cent” sales tax, funding street and park upgrades beginning in 2024. Major transit and redevelopment projects—including bus rapid transit corridors and mixed-use sites—are reshaping the construction landscape.([stpaul.gov](https://www.stpaul.gov/salestax?utm_source=openai))