Denver Sees Strong Construction Growth Driven by Labor Demand

Nonresidential construction costs in Denver rose 1.37% last quarter and 6.84% annually, higher than the national 5.6% increase. Construction employment grew 4% to 21,200 workers with low unemployment. Costs for site concrete and reinforcing steel saw large increases, while some finish trades declined. Electrical systems costs rose 3.4%, with long lead times for key power equipment causing procurement challenges. Demand is driven by data centers, grid infrastructure, and advanced manufacturing.