Is Metal Framing Cheaper Than Wood?

Cost remains one of the most important considerations when choosing between wood and metal framing. But as framing systems evolve and projects grow in scale and complexity, the idea of “cheaper” becomes more nuanced than a simple price-per-stud comparison. Developers, general contractors, and investors are increasingly asking not just what framing costs up front—but what it costs over the life of the project.

So, is metal framing cheaper than wood in 2025?

It depends on how you define cost.

Let’s break it down.

A Closer Look at Material and Installation Costs

At a glance, wood framing often appears to be the more affordable option. For a mid-size development in a major U.S. metro, the typical cost of wood framing ranges from $6 to $9 per square foot for materials, with erection labor adding another $7 to $10 per square foot. That puts the total framing package somewhere between $13 and $19 per square foot.

Panelized cold-formed steel framing, by comparison, typically ranges from $12 to $15 per square foot for manufactured wall panels, with on-site assembly coming in at around $4 to $6 per square foot. The full framing cost using a panelized steel system generally falls between $16 and $21 per square foot.

‍

While that may look more expensive on paper, several key differences emerge when looking beyond unit prices. Panelized systems are far less labor-intensive to assemble, especially when paired with an experienced crew or insourced labor model. Unlike wood framing, which requires complex cutting, measuring, and constant adjustment on site, panelized steel framing is designed for rapid, repeatable assembly. That translates to faster build times, lower labor overhead, and fewer errors.

These benefits are amplified in projects with repetition—townhomes, multifamily, hotels, and storage facilities—where panelization offers consistent layouts and measurable efficiencies. In these cases, panelized steel often becomes more cost-effective than stick-built wood before the first panel is even installed.

Why Speed of Construction Changes the Equation

Time is money, and nowhere is that truer than in construction. Panelized steel framing can be installed 30 to 50 percent faster than wood. This reduction in schedule isn’t just about speed—it’s about predictability and control. With fewer skilled workers required, and with framing delivered pre-cut and labeled, there's significantly less room for onsite errors or delays.

Faster framing means a shorter overall construction timeline, which directly impacts interest carry. For financed projects, the difference between a 9-month and 6-month build can equate to tens or hundreds of thousands in loan interest savings. More importantly, faster delivery to market allows developers to generate revenue sooner—whether through leases, sales, or refinancing events.

For developers navigating tight lending environments or compressed pro formas, that time advantage often proves more financially meaningful than a slightly lower material cost.

Waste, Theft, and the Hidden Costs of Wood

Wood framing is inherently inefficient. Industry data shows that 15 to 20 percent of lumber on a typical jobsite is either wasted, warped, or stolen. That translates to material loss, additional dumpsters and hauling fees, and unpredictable supply chain stress.

With panelized steel, waste is virtually eliminated. Panels arrive cut-to-fit, engineered to exact dimensions, and labeled for straightforward assembly. Crews don’t need to measure and saw on site. In many cases, there’s no need for a dumpster at all. There’s also a significantly lower risk of theft—steel simply isn’t as attractive a target as lumber.

While it's easy to dismiss waste as a cost of doing business, on larger projects this can add $0.10 to $0.15 per square foot—or more—to the total framing cost. That figure, when multiplied across thousands of square feet, materially affects margins.

Long-Term Benefits of Metal Framing: Insurance, Maintenance, and Market Appeal

Framing doesn't stop costing money once the walls go up. Builders and property owners must consider how that frame performs over time.

Steel framing is non-combustible, which typically reduces insurance premiums by 20 to 30 percent compared to wood-framed buildings. It also eliminates issues like termite damage, mold, and warping—reducing ongoing maintenance and liability exposure.

Aesthetically, cold-formed steel offers clean, consistent lines that appeal to buyers and tenants alike. Developers are beginning to note that consumers increasingly recognize the structural and visual benefits of metal-framed homes and buildings—and are willing to pay a premium for them. This added resale or lease value contributes directly to long-term ROI.

For a broader look at how steel stacks up against wood beyond cost alone, you can explore this side-by-side breakdown: Steel vs. Wood Framing: What Developers Need to Know in 2025.

The Big Picture: Cost vs Value

Framing decisions shouldn’t be based solely on unit cost. While the price of materials is easy to quantify, it’s the secondary impacts—labor, waste, speed, risk, and lifecycle performance—that truly determine project profitability.

When evaluated in that light, the total cost of wood and metal framing is often closer than most expect—and in many cases, metal comes out ahead. For developers focused on scale, efficiency, and long-term value, the framing material becomes more than a line item—it becomes a strategic advantage.

That said, transitioning to panelized steel framing does require a shift in mindset and operations. There’s a learning curve, and early projects may carry small cost premiums as crews adapt to a new system. But over time, the efficiencies become clear—and the savings compound.

In contrast, wood framing offers little room for innovation. It’s a mature system with diminishing returns. Steel framing, on the other hand, continues to benefit from advancements in automation, logistics, and prefabrication. Developers who position themselves early with metal framing are more likely to capitalize on those trends as costs decline and performance improves.

If you’re interested in understanding what it takes to transition your workflow from wood to steel, this step-by-step guide offers a helpful starting point: How to Convert to Metal Framing.