Portland Defies National Construction Cost Surge With Minimal Increases

While construction costs soared across most major U.S. markets in the second quarter, Portland emerged as an unexpected bright spot, posting the nation’s smallest cost increase at just 0.57 percent even as the industry grappled with trade uncertainty and labor pressures. The restrained cost growth in Oregon’s largest city stands in stark contrast to the national picture, where nonresidential construction expenses climbed 2.72 percent for the quarter and 5.42 percent year-over-year, according to the Mortenson Quarterly Cost Index. Portland’s annual increase of 3.3 percent also lagged well behind the national average, suggesting unique market dynamics at play in the Pacific Northwest.

The modest cost increases come at a time when Portland’s construction employment has remained relatively st