Regional Cost Variability: Costs vary widely by location - San Francisco remains the most expensive, while Dallas is the lowest. Local labor, code enforcement, and material access are major cost drivers.
Market Forces at Play: Tariffs, labor shortages, and high interest rates continue to impact budgets. While some materials have stabilized, input costs remain nearly 40% above pre-2020 levels.
Regulatory Shifts Impacting Cost: New requirements, like fire sprinklers and EV charging, are now standard in many jurisdictions, adding cost and complexity that must be factored into 2025 plans.
Design Features That Move the Needle: Elements like below-grade construction, mixed-use integration, or enhanced façades can significantly increase costs. The session covered which design choices drive pricing and where value can be optimized.
The Outlook Ahead: Costs are expected to rise another 3-6% in 2025, but increased competition in some markets may help balance inflationary trends.