Navigating Rising Construction Costs: A Dental Startup Consultant's Perspective

As a trusted advisor to more than 800 successful dental startups, I’ve been getting a lot of questions about how rising construction costs are affecting new practices.

Here’s the good news: it’s not as discouraging as you might think.

Yes, construction materials have jumped significantly in cost—some by as much as 43% to 60%. And while headlines might suggest that prices are “cooling,” they’re still sitting far above where they were before the spike.

But here’s the bottom line—if you're serious about opening your own dental practice, you can’t afford to wait and hope for prices to drop. Construction is a necessary investment in your business—and one that pays off when done wisely.

Maximizing Funding and Negotiating Costs

At Ideal Practices, we’ve worked with thousands of startup dental practices and developed real-world strategies for minimizing cost without cutting corners.

The first step? Maximize your funding.

That means working closely with lenders to negotiate for tenant improvement allowances and landlord-contributed build-outs. You also need to choose the right construction path—architect-led or design-build—based on your budget and goals.

Here’s a real example: Just last week, we helped a client save over $20,000 by adjusting one single line item in their contractor bid. They didn’t even realize that line item was optional.

We’ve also developed a contractor vetting and bidding process that routinely uncovers opportunities to save tens of thousands. That means more breathing room for you—and less financial strain in year one.

Design Elements and Future Scalability

Another key area where you can save without sacrificing quality? Your design choices.

Yes, your office should reflect the high-quality dentistry you provide—but not every design element needs to be finished on day one.

By designing with scalability in mind, you can delay certain build-outs until your cash flow improves. Many associate dentists don’t realize this is even an option until they speak with our team. Now you know, too.

Start strong with a foundational design and build up from there over time.

The Reality of Rising Construction Costs

Let’s talk about reality: Construction costs are rising, and they always will.

On average, dental industry construction increases by 3% to 8% each year. So if you’re waiting for the “perfect moment” to build—spoiler alert—it may never come.

Let’s break it down. Opening a dental practice usually requires $500,000 to $600,000 in total investment, with $230,000 to $350,000 of that going to construction alone. Delaying by just a year could mean paying $30,000 more for the same exact build.

If that doesn’t motivate you to act sooner rather than later, I don’t know what will.

The Bottom Line

So, can you afford to open your practice now?

Maybe the better question is—can you afford not to?

The cost of waiting is real, and with the right guidance, you can build smart, stretch your investment, and open your doors with confidence.

At Ideal Practices, we’re here to help you navigate every part of the process—from financial planning to vendor negotiation to long-term growth strategy.

Book a free consultation today and let’s start building your dream dental practice.

About Steve Burns

I’m Steve Burns, Startup Practice Consultant at Ideal Practices. With over 25 years of experience in dental technology, equipment, and construction, I bring a proven, strategic approach to every project.

Whether it’s guiding technology selection or helping you negotiate with contractors, I’m here to make sure your practice gets built on a foundation of smart decisions.

Let’s talk about how we can bring your vision to life—even in a market of rising costs.