Healthcare construction costs for 2025

The landscape of healthcare construction has undergone a significant evolution, driven by advancements in technology, a focus on patient-centered care and the need for adaptable, resilient facilities. Modern healthcare facilities are increasingly designed with flexible spaces that can be easily reconfigured to meet changing demands, such as accommodating new technologies or responding to public health emergencies.

According to Gordian’s RSMeans Data building models, the national average cost per square foot for commercial new construction of hospitals is more than 20% higher today than in 2020. While construction costs have stabilized over the past year, other factors impact project budgets and timelines, such as integrating new technologies, sourcing skilled labor and managing material volatility. With interest rates remaining elevated and overall market uncertainty, leaders should consider prioritizing renovation work in their planning budgets to ensure strategic resource allocation and long-term sustainability.

Gordian’s data features over 100 localized building models that allow architects, engineers and other preconstruction professionals to quickly create conceptual estimates for future builds. This table shows six years of costs per square foot for three-story hospital buildings, the percentage of change in the past year and the percentage of change over the five-year period. 

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

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