Regional Cost Index
Localize a construction estimate between metro areas. Pick where the estimate was priced and where the work is, and the tool converts the cost using separate material and labor location factors (U.S. average = 100). Labor swings cost far more than material between cities, so the two convert independently — set your material/labor split to match the job.
Locations
Your Estimate
Austin, TX vs National Average
Austin, TX index · U.S. avg = 100
Labor swings cost far more than material between metros. Material and labor legs convert independently at the share you set. Figures are approximate location factors for planning — verify against local quotes and prevailing wage.
How it works & data notes
- National average = 100. A combined index of 118 means roughly 18% more than a national-average estimate; 90 means about 10% less. Material and labor each have their own index because they move differently.
- Material varies modestly, labor a lot. Lumber, steel, and copper are nationally-traded commodities, so material spread is mostly freight and local market. Wages, union density, and prevailing-wage rules swing installed cost far more — which is why the two legs convert separately at your chosen split.
- Localizing an estimate: a base cost priced on the “From” basis is split into material and labor by your share, each leg is scaled by the ratio of the two cities’ indices, then recombined — so moving a bid from Dallas to San Francisco (or from the national average to your metro) respects that the labor jump is bigger than the material one.
- These are approximate location factors, not licensed RSMeans City Cost Index data. They are planning seeds — refine the labor side against BLS metro construction wages (OEWS) and cross-check the overall level against BEA Regional Price Parities. Always verify against real local quotes and prevailing wage before relying on a number.
- This page is informational and not financial, bidding, or purchasing advice.
Frequently asked questions
What does the index number mean?
National average = 100 for both material and labor. A combined index of 118 means building in that metro runs roughly 18% above a national-average estimate; 90 means about 10% below. Material and labor each carry their own index because they behave differently, and the combined figure is just the two blended at whatever material/labor split you set.
How do I adjust an estimate for my city?
Set “From” to where the estimate was priced — the national average, or the city a historical bid came from — and “To” to where the work is. The tool splits your base cost into material and labor at the share you set, scales each leg by the ratio of the two cities’ indices, and recombines them. That matters because the labor jump between metros is usually much bigger than the material jump — a single flat factor would misprice high-wage union markets in both directions.
Where do these index values come from?
They are approximate location factors curated for this tool — not licensed RSMeans City Cost Index data, and not a live feed, because no free construction-specific city index exists. The labor side can be sanity-checked against BLS metro construction wages (OEWS) and the overall level against BEA Regional Price Parities. Treat them as planning seeds, and verify against real local quotes and prevailing-wage rates before a number goes into a bid.
Why does labor vary so much more than material between cities?
Lumber, steel, copper, and most everything else on the truck are nationally traded commodities — the regional spread is mostly freight and local market conditions, so material indices here sit in a narrow band (roughly 94 to 122, with Honolulu the outlier). Labor is set locally: wage levels, union density, and prevailing-wage rules push the labor indices from the mid-80s in the low-cost South to around 150 in San Francisco and New York. On a labor-heavy scope, the city you build in moves the number far more than where you buy material.
Is this the same as the RSMeans City Cost Index?
No. RSMeans publishes the industry-standard city cost indexes, but that data is proprietary and licensed — you buy it. This tool uses the same concept (location factors against a 100 national average, applied to material and labor separately) with independently estimated values, so expect the numbers to differ. If your contract or client requires RSMeans factors, use RSMeans; use this for quick planning-stage localization.
What material share should I use?
The default is 45% material / 55% labor, which is a reasonable middle for many trades, but set it to match the job: service and finish work often runs labor-heavy (material share 30–40%), while equipment- or gear-heavy scopes like switchgear packages or mechanical equipment can run 60% material or more. The split matters here because only the labor leg gets the big city-to-city swing. Your own estimate breakdown is the best source for the number.