Nonresidential construction conditions in the Seattle region remained steady through the fourth quarter of 2025, with overall cost escalation continuing to moderate in the Seattle and Portland markets, according to a recent report by Mortenson.

The Seattle Mortenson regional office reported a modest cost increase of +0.30% this quarter. Across other Mortenson regional offices, Seattle and Portland recorded the smallest quarterly changes, at +0.30% and +0.32%, respectively. Material and labor costs in Seattle remained largely stable, with minimal upward pressure. 

Regional construction activity in the Seattle market remained active but subdued during the quarter, with competitive bidding conditions reflecting a slowdown in several key sectors. Reduced activity in commercial office, higher education, and healthcare increased trade partner availability and competition, helping limit labor and material pressure. Across all regions, labor availability and general supply chain conditions have moderated but continue to selectively impact projects.