Hospital construction costs for 2024

In the ever-evolving landscape of healthcare, the construction of state-of-the-art facilities is a visible testament to the sector's commitment to advancing patient care. However, this progress does not come without its challenges. The industry is grappling with a complex web of factors that escalate construction costs, test its resilience, and underscore the importance of reliable, up-to-date construction cost data.

According to Gordian’s RSMeans Data Online Building Models, the national average cost per square foot for commercial new construction of hospitals is nearly 20% higher today than in 2020. In addition to rising construction costs, other key challenges include integrating new technologies, sourcing skilled labor, managing material availability, and implementing infection control protocols. These factors can significantly impact project budgets and timelines.

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Current, localized construction cost data is crucial for creating accurate budgets, planning future expansions, ensuring timely project completion, and maintaining a competitive edge.

Gordian’s data features over 100 building models, including hospital buildings. These localized models allow architects, engineers, and other preconstruction professionals to quickly and accurately create conceptual estimates for future builds. This table shows a five-year view of costs per square foot for three-story hospital buildings.

Visit rsmeans.com/bdandc for more information about Gordian’s RSMeans Data.

Location	2020	2021	2022	2023	2024	5-Year Change
National Average	$371.48	$382.12	$400.11	$419.18	$445.26	19.9%
New York, NY	$494.19	$506.94	$523.11	$540.45	$575.76	16.5%
Chicago, IL	$444.21	$456.40	$474.03	$494.76	$525.06	18.2%
Boston, MA	$427.46	$433.44	$454.36	$479.38	$505.03	18.2%
Los Angeles, CA	$419.04	$430.83	$452.05	$475.20	$507.91	21.2%
Ann Arbor, MI	$369.02	$382.83	$396.83	$409.43	$437.62	18.6%
Omaha, NE	$340.43	$352.74	$363.59	$383.59	$408.53	20.0%
Denver, CO	$333.80	$345.51	$362.23	$378.97	$405.03	21.3%
Atlanta, GA	$329.05	$342.71	$359.46	$375.52	$402.45	22.3%
Phoenix, AZ	$327.81	$332.73	$351.97	$373.71	$398.65	21.6%
Houston, TX	$320.44	$329.72	$341.67	$357.30	$382.49	19.4%

Please note: Square foot models are used for planning and budgeting and are not meant for detailed estimates.

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