Construction costs continue to rise, but at a slightly slower pace, according to the latest Quarterly Cost Report from international property and construction consultancy firm Rider Levett Bucknall (RLB), which analyzes the North American construction industry in 14 key markets. The latest RLB quarterly cost report, with data current to mid-Q2 2024, shows that the national average increase in construction costs was 1.12% higher than the previous quarter. In the first quarter, the increase was 1.31%.
Year-over-year, the U.S. national average increase in construction costs is approximately 5.41%, compared to 5.85% year-over-year in the first quarter.
Boston, Chicago, Denver, Honolulu, Los Angeles, Portland, San Francisco and Washington D.C. experienced increases over the national average this quarter. Denver, Las Vegas, New York, Phoenix and Seattle experienced gains that were less than the national average.
“The construction industry continues to experience strong demand, but uncertainty is being fueled by high interest rates and increasing labor costs for the rest of 2024. The approaching presidential election and potential policy adjustments are also contributing to this uncertainty,” said Paul Brussow, president of RLB North America. “Nevertheless, overall growth in the construction sector is expected to remain positive this year.”
