Construction costs are still on the rise, with a national average increase of 1.53% in the U.S. over the prior quarter and 5.28% year-over-year, according to the latest Quarterly Cost Report from international property and construction consultancy firm Rider Levett Bucknall (RLB). The report provides a perspective on the North American construction industry in 14 key markets.
With current data from mid-Q4 2023, the latest RLB quarterly cost report showed that Boston, Chicago, Honolulu, Portland, Seattle and Washington D.C. experienced increases over the national average this quarter. Denver, Las Vegas, Los Angeles, New York, Phoenix and San Francisco experienced gains that were less than the national average.
“While there are a lot of positive indicators for the industry right now, including consumer confidence, moderating inflation, and low unemployment, there are still enough other indicators showing us that the economic uncertainty hasn’t become any clearer,” said Paul Brussow, president of RLB North America. “The newest numbers on the ABI [Architectural Billings Index], the chronic workforce challenges and potential soft recession still feed the uncertainty and a potential slowdown for 2024.”
The report also noted that the construction unemployment rate is up slightly to 3.8% from 3.4% in the same time period last year. The ABI was 44.3, the third month in a row of significant decreases.
