Construction Costs in Tempe, AZ 2026

Estimate renovation and building costs in Tempe. Labor input: $29.98/hr, the BLS OEWS May 2025 median wage for carpenters, construction laborers and construction supervisors in the Phoenix-Mesa-Chandler, AZ metro; HammerIO's modeled material cost index is 97.

$29.98

Median construction wage/hr (BLS May 2025)

97

Material Cost Index

$421,717

Typical Home Value (est.)

102

Cost of Living Index

Construction trade wages, Phoenix-Mesa-Chandler, AZ metro (BLS OEWS May 2025)

Median hourly wages published by the U.S. Bureau of Labor Statistics for the Phoenix-Mesa-Chandler, AZ metropolitan area, which includes Tempe, compared with the U.S. median for each occupation. These are what employees earn, not what contractors bill: a contractor's hourly rate adds overhead, insurance, equipment and profit. The calculator below scales its labor share by the local-to-national ratio for carpenters, construction laborers and construction supervisors (1.00 here).

Occupation (SOC)Metro medianAZ medianU.S. medianvs U.S.
Carpenters (47-2031)$29.00$28.17$29.120%
Construction Laborers (47-2061)$22.56$22.40$22.660%
First-Line Supervisors of Construction Trades and Extraction Workers (47-1011)$38.38$37.76$38.420%
Electricians (47-2111)$29.43$29.36$30.38-3%
Plumbers, Pipefitters, and Steamfitters (47-2152)$30.65$29.84$30.670%
Heating, Air Conditioning, and Refrigeration Mechanics and Installers (49-9021)$29.41$28.56$29.330%
Roofers (47-2181)$22.96$22.76$26.65-14%
Painters, Construction and Maintenance (47-2141)$23.49$23.20$23.75-1%
Drywall and Ceiling Tile Installers (47-2081)$25.13$24.18$28.33-11%
Cement Masons and Concrete Finishers (47-2051)$28.49$28.32$27.41+4%
Brickmasons and Blockmasons (47-2021)$28.55$28.49$29.87-4%
Tile and Stone Setters (47-2044)$25.72$25.00$26.77-4%
Floor Layers, Except Carpet, Wood, and Hard Tiles (47-2042)$21.51$21.51$27.15-21%
Insulation Workers, Floor, Ceiling, and Wall (47-2131)$20.35$20.29$23.62-14%
Sheet Metal Workers (47-2211)$24.63$24.16$29.71-17%

Source: U.S. Bureau of Labor Statistics, Occupational Employment and Wage Statistics, May 2025 estimates for CBSA 38060 (Phoenix-Mesa-Chandler, AZ). "n/a" means BLS suppressed the metro estimate; the state column still applies and "vs U.S." then compares the state median. Retrieved September 2026 via the BLS Public Data API.

Tempe Overview

Population

180,587

Climate Zone

Hot-Humid / Hot-Dry (Zone 2)

Seismic Risk

low

Median Household Income

$76,353

Tempe Remodeling Cost Estimator

Leave blank for typical kitchen remodel size

Cost Breakdown

Materials$20,370
Labor$15,354
Permits (4%)$1,429

Estimated Total Cost

$37,153

Mid-range Kitchen Remodel — 280 sq ft in Tempe

Materials

$20,370

55% of total

Labor

$15,354

41% of total

Permits

$1,429

~$1,479 modeled allowance

1% Below National Average

The same kitchen remodel at the national average would cost approximately $37,492. HammerIO's model places Tempe below the national baseline because of its modeled labor and material factors.

View Arizona Statewide Costs

Compare Tempe costs with the Arizona state average and other cities.

Project Cost Comparison: Tempe vs National Average

Project TypeTempe EstimateNational BaselineDifference
Kitchen Remodel$40,281$35,000+15%
Bathroom Remodel$17,000$18,000-6%
Roof Replacement$14,500$15,000-3%
Whole House Paint$3,600$3,800-5%
Flooring Install$6,500$7,000-7%
Deck Build$11,500$12,000-4%

Material Prices in Tempe

Concrete

$135 /cubic yard

$1 below the estimated Arizona average of $136/yd³

Lumber

$5.80 /board foot

$0.47 above the estimated Arizona average of $5.33/BF

Popular Projects in Tempe

🪟

#1 Window Replacement

Common project type to budget for in Tempe

📐

#2 Room Addition

Common project type to budget for in Tempe

🌳

#3 Landscaping

Common project type to budget for in Tempe

Construction Cost Overview for Tempe, AZ

Construction and renovation costs in Tempe, AZ are modeled here with a cost of living index of 102 and a material cost index of 97 (where 100 represents the national baseline). With a BLS OEWS May 2025 median construction wage of $29.98 per hour (carpenters, laborers and supervisors, Phoenix-Mesa-Chandler, AZ metro) and a typical home value estimate of $421,717, homeowners in Tempe should plan their renovation budgets carefully using local pricing data.

Tempe sits in IECC Climate Zone 2 (Hot-Humid / Hot-Dry), which influences insulation requirements, HVAC sizing, and overall material choices for both new construction and remodeling projects. Low seismic risk in the model. The median household income of $76,353 in Tempe means that a mid-range kitchen remodel at $40,281 represents approximately 53% of annual household income.

HammerIO uses a modeled permit allowance of $1,479 for Tempe; actual fees vary by project scope, valuation, and the local fee schedule. Major renovations involving structural, electrical, or plumbing work generally require permits, so confirm with the local building department. Scheduling outside peak season may improve contractor availability and pricing flexibility.

Other Cities in Arizona

Chandler, AZ

BLS wage: $29.98/hr • Material Index: 103 • Kitchen: $43,529

Flagstaff, AZ

BLS wage: $28.52/hr • Material Index: 99 • Kitchen: $41,507

Glendale, AZ

BLS wage: $29.98/hr • Material Index: 95 • Kitchen: $39,430

Lake Havasu City, AZ

BLS wage: $25.25/hr • Material Index: 95 • Kitchen: $39,362

Mesa, AZ

BLS wage: $29.98/hr • Material Index: 100 • Kitchen: $42,112

Peoria, AZ

BLS wage: $29.98/hr • Material Index: 98 • Kitchen: $40,830

Phoenix, AZ

BLS wage: $29.98/hr • Material Index: 103 • Kitchen: $43,557

Prescott, AZ

BLS wage: $28.09/hr • Material Index: 96 • Kitchen: $39,883

Scottsdale, AZ

BLS wage: $29.98/hr • Material Index: 107 • Kitchen: $45,814

Surprise, AZ

BLS wage: $29.98/hr • Material Index: 99 • Kitchen: $41,429

Tucson, AZ

BLS wage: $26.55/hr • Material Index: 99 • Kitchen: $41,328

Yuma, AZ

BLS wage: $24.89/hr • Material Index: 96 • Kitchen: $39,962

Methodology & Construction Data Sources

How we calculate Tempe construction costs: These are planning estimates from HammerIO's cost model: national project baselines adjusted by modeled regional labor and material factors for Tempe. Public data sources below are used as benchmarks and context; the city figures are estimates, not official statistics or contractor quotes.

  1. Labor rates, the calculator uses BLS Occupational Employment and Wage Statistics (May 2025) median hourly wages for the Phoenix-Mesa-Chandler, AZ metro, scaling its labor share by the local-to-national ratio (1.00) for carpenters, construction laborers and construction supervisors. These are employee wages, not contractor billing rates; the full trade table is above.
  2. Materials pricing trends are checked against the BLS Producer Price Index (PPI) for Construction Materials, (national price indexes for materials such as lumber, concrete, and steel); the city material index is a modeled regional adjustment.
  3. Building permit costs are shown as a modeled allowance; confirm actual fees with the Tempe building department's current fee schedule.
  4. Regional cost adjustment uses HammerIO's modeled labor-rate and material-index factors for Tempe; it is not a licensed proprietary city cost index.
  5. Building codes and standards cross-referenced with EPA Renovation, Repair and Painting (RRP) Rules and OSHA Construction Safety Standards.

Authoritative construction cost data sources:

Cost Disclaimer: Estimates are modeled planning ranges for Tempe, not local quotes. Actual project costs depend on site conditions, design complexity, contractor availability, material grades, and permitting timelines. Always obtain 3+ contractor bids before committing to any project. Actual prices can differ substantially from these estimates.

Reviewed by Rowan Ashby · Last updated 2026

Frequently Asked Questions

How much does a kitchen remodel cost in Tempe, AZ?
HammerIO's planning model estimates a mid-range kitchen remodel in Tempe, AZ at approximately $40,281. Budget renovations start around $28,197, while premium remodels with custom cabinetry and high-end appliances can reach $60,422 or more. The labor input is $29.98/hour, the BLS OEWS May 2025 median wage for carpenters, construction laborers and construction supervisors in the Phoenix-Mesa-Chandler, AZ metro; contractor billing rates run higher and vary.
What is the average construction labor rate in Tempe?
The BLS OEWS May 2025 median hourly wage for general construction work in the Phoenix-Mesa-Chandler, AZ metro is $29.98 (average of the carpenter, construction laborer and construction supervisor medians), 0% below the U.S. median of $30.07 for the same occupations. Electricians: $29.43/hr; Plumbers: $30.65/hr. These are published employee wages, not contractor quotes; a contractor's billed hourly rate adds overhead, insurance, equipment and profit, so ask for trade-specific pricing in each bid.
Do I need a building permit for home renovations in Tempe?
Most significant renovations in Tempe, AZ require building permits. HammerIO uses a modeled permit allowance of about $1,479; actual fees depend on the local fee schedule and project scope. Projects involving structural changes, electrical rewiring, plumbing modifications, or additions almost always require permits. Cosmetic updates like interior painting, replacing fixtures, or installing new flooring typically do not.
How does Tempe's cost of living affect construction costs?
HammerIO's model assigns Tempe a cost of living index of 102 (national baseline = 100). Higher-cost areas tend to have higher labor rates, material delivery costs, and permit fees. The model's material cost index for Tempe is 97, an estimate of regional material pricing rather than a published local statistic.
What are the most popular home improvement projects in Tempe?
HammerIO highlights Window Replacement, Room Addition, Landscaping as common projects to budget for in Tempe, AZ; this is a planning shortlist, not survey data. Resale cost recovery varies widely by project type, scope, and local market, so compare kitchen, bathroom, and roof budgets against local home values and buyer expectations before choosing upgrades.

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