Student Housing Construction Costs Brief Summer 2025

The first half of 2025 has been marked by persistent economic uncertainty, with the U.S. construction sector experiencing a notable slowdown. According to Dodge Construction Network, activity across both residential and nonresidential markets has decelerated amid rising costs and cautious investor sentiment.

Despite these headwinds, the labor market remains historically tight. Construction unemployment is hovering near a 20-year low at 3.4%, and the industry currently faces a shortfall of approximately 400,000 workers to meet existing project backlogs. As interest rates begin to ease and tariff uncertainty diminishes, demand for skilled labor is expected to intensify, potentially straining project timelines and budgets.

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