Discover essential construction cost insights every lender should know. Learn how to manage construction cost effectively and safeguard your investments.

Overview

Grounded in data from real projects we’ve vetted through our Plan & Cost Review process, so you can trust the numbers.

Helping you finance smarter, safer, and with fewer surprises.

1. Why Construction Costs Deserve Your Full Attention — When costs spiral, projects stall, and loans get stressed. A sharp eye on cost trends and efficiency metrics helps you:

2. Cost Trends at a Glance — Regional realities

Project‑type premiums

High‑Cost Specialties

Mid‑Range Staples

Cost‑Efficient Builds

Data centers ($600+/SF)

Mixed‑use, offices, multifamily ($250–350/SF)

Warehouses, basic industrial ($100–200/SF)

Luxury custom homes ($500–600+/SF)

Inflation in action

Typical multifamily cost per SF has risen 20–30 % since 2018, mirroring industry‑wide material and labor inflation. Budgets older than a year need a reality check - and escalation reserves.

3. Efficiency Metrics That Matter — Cost per Square Foot (PSF)

Cost per Unit (CPU)

Closing Thoughts — Construction lending is a balance of opportunity and risk. By grounding every deal in real‑time cost data—regionally tuned, type‑specific, and efficiency‑tested—you reduce surprises, safeguard capital, and build stronger borrower relationships.

Ready to dive deeper or need tailored benchmarks for an upcoming deal?

Let’s talk. Together we’ll keep your projects—and your portfolio—on solid ground.