Construction costs for non-residential projects climbed nationwide, including in Milwaukee, in 2025 compared to the year prior, according to a new report from Minneapolis-based Mortenson Construction.
Across the country, non-residential construction costs jumped by 2.24% in the first quarter, and over 3.9% in 12 months, according to the report. In Milwaukee, non-residential construction costs soared even higher, rising by nearly 2.6% in the first part of 2025, and 4.3% in a year.
Mortenson Construction tracks non-residential construction costs in Milwaukee, Chicago, Minneapolis, Denver, Phoenix and Seattle. Here’s a breakdown of its latest report:
Why are non-residential construction costs increasing nationwide?
According to the report, construction material costs increased by 3.8% year-over-year. The jump in prices appears to be driven by tariffs hitting aluminum and steel prices. “Most trade partners report a cautious wait-and-see approach as vendors provide updated pricing guidance,” according to the report.
However, despite increasing material prices, supply chains remain steady, with most regions reporting no major concerns for material availability. Additionally, labor markets remain relatively stable with most trades reporting little concern with labor availability.
Construction costs for start of 2025 rose by more than 2% nationwide
Non-residential construction costs tracked by Mortenson saw a 2.24% increase in the first quarter of 2025 and a 3.91% increase over the previous 12 months.
According to the report, the following cities saw some of the highest increases in non-residential costs:
Milwaukee (2.58% increase)
Minneapolis (2.52% increase)
Portland (2.19% increase)
Top material cost increases include steel and aluminum
According to the report the top material cost increases this quarter include the following:
Structural steel and metal decking material (6% increase)
Aluminum storefronts (4% increase)
Reinforcing steel material (3.5% increase)
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This article originally appeared on Milwaukee Journal Sentinel: Construction costs in Milwaukee, Wisconsin increase in 2025: Mortenson