Over the last few years, everyone in construction has felt the squeeze of rising costs. Materials jumped, labor became harder to secure, and many of us had to make tough calls just to keep projects moving. The good news is that the pace of those increases is finally starting to slow down, and in some parts of the country we’re even seeing signs of stabilization.
Gordian’s Q2 2025 construction cost report showed that while prices are still moving up, they’re not climbing as fast as they were a couple of years ago. The Mortenson Cost Index also highlighted how different things can look depending on where you’re building: Portland only saw a 0.57% increase last quarter, while Denver jumped by 4.72%. That tells us two things—there’s progress, but costs can still vary a lot depending on the region.
For our members at the National Hispanic Construction Association (NHCA), this shift is important. A steadier market gives small and mid-sized contractors a little more breathing room when bidding jobs, planning budgets, and investing in their crews. Many of our members are Latino-owned firms and independent tradespeople who often feel the hit of sudden spikes the hardest. Any sign of stability is a win.
That said, we can’t take our eye off the ball. Even with costs slowing, materials and labor are still expensive—and they can swing quickly. It’s critical for contractors and business owners to protect themselves by keeping a close watch on bids, locking in prices when possible, and making sure contracts account for potential increases down the road. Planning ahead is still the best defense against surprises.
Looking ahead, the industry forecast is positive. Analysts expect steady growth through 2026, fueled by strong housing demand, infrastructure projects, and innovations like modular construction that help stretch labor and material resources further. With the right preparation, NHCA members can take advantage of these opportunities and continue building strong businesses.
At NHCA, our mission is to support inclusion and advancement in the construction industry, especially for the Latino workforce that makes up such a vital part of it. As the market steadies, we’re committed to connecting our members with resources, training, and partnerships that help them not just survive the ups and downs—but thrive through them.
The bottom line: things are looking better, but let’s stay cautious. Stability is starting to return, and that’s encouraging. But by continuing to protect ourselves against potential swings in labor and material costs, we can make sure our businesses remain strong and ready for whatever comes next.