Healthcare Construction Costs In 2025
The healthcare construction sector has evolved significantly in recent years, shaped by technological advancements, an emphasis on patient-centered care, and the growing need for adaptable, resilient facilities.
Today’s healthcare buildings are increasingly designed with flexible spaces that can be reconfigured to accommodate emerging technologies or respond to public health emergencies.
According to Gordian’s RSMeans Data building models, the national average cost per square foot for new hospital construction has risen by more than 20% since 2020. Although construction costs have leveled off over the past year, project budgets and timelines remain influenced by factors such as technology integration, skilled labor availability, and fluctuations in material costs.
With interest rates staying high and ongoing market uncertainty, healthcare leaders are encouraged to prioritize renovations in their capital planning to maximize resource efficiency and promote long-term sustainability.
Gordian’s RSMeans Data includes more than 100 localized building models, helping architects, engineers, and preconstruction professionals develop accurate conceptual estimates for upcoming projects. The table below outlines six years of cost-per-square-foot data for three-story hospital buildings, including annual and five-year percentage changes.
| Location | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 24-25 Change | 5-Year Change |
| National Average | $371.48 | $382.12 | $400.11 | $419.18 | $445.26 | $451.11 | 1.3% | 21.4% |
| New York, NY | $494.19 | $506.94 | $523.11 | $540.45 | $575.76 | $582.21 | 1.1% | 17.8% |
| Chicago, IL | $444.21 | $456.40 | $474.03 | $494.76 | $525.06 | $540.50 | 2.9% | 21.7% |
| Boston, MA | $427.46 | $433.44 | $454.36 | $479.38 | $505.03 | $513.62 | 1.7% | 20.2% |
| Los Angeles, CA | $419.04 | $430.83 | $452.05 | $475.20 | $507.91 | $520.83 | 2.5% | 24.3% |
| Ann Arbor, MI | $369.02 | $382.83 | $396.83 | $409.43 | $437.62 | $427.93 | -2.2% | 16.0% |
| Omaha, NE | $340.43 | $352.74 | $363.59 | $383.59 | $408.53 | $407.60 | -0.2% | 19.7% |
| Denver, CO | $333.80 | $345.51 | $362.23 | $378.97 | $405.03 | $401.93 | -0.8% | 20.4% |
| Atlanta, GA | $329.05 | $342.71 | $359.46 | $375.52 | $402.45 | $398.39 | -1.0% | 21.1% |
| Phoenix, AZ | $327.81 | $332.73 | $351.97 | $373.71 | $398.65 | $395.83 | -0.7% | 20.8% |
| Houston, TX | $320.44 | $329.72 | $341.67 | $357.30 | $382.49 | $373.81 | -2.3% | 16.7% |
Note: Square foot models are used for planning and budgeting and are not meant for detailed estimates.
Source: Building Design + Construction
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