Rider Levett Bucknall (RLB) has released its latest Quarterly Cost Cost Report (QCR) for North America. The report includes data current to July 1, 2018 and features the construction cost information of 14 different markets, providing a statistical perspective of the state of the construction industry.
National average construction costs increased approximately 4.72% between July 2017 to July 2018.
In addition to tracking construction costs within 14 across 14 different markets, RLB has also tracked construction costs in major American markets since 2001. A look at the data going back to 2012 reveals the cumulative cost increase in these cities ranges from a low of 22.4% in Las Vegas to a high of 50.6% in San Francisco, with most locations falling into the 30% range. Putting this into perspective, over the same period, the Consumer Price Index increased by a relatively small 11.4%.
The disparity has several causes including a continued scarcity of labor, upward wage pressure, increasing interest rates, tightening supply of steel and more recently, some contractors and suppliers using the uncertainty around tariffs as a cover for raising their prices.
Construction costs are on the rise in Canada
Toronto is experiencing a very strong peak in the construction of small-to mid-size projects, specifically for agencies such as school boards where projects are receiving minimal bids; pushing pricing on some projects up 30% over bids received less than a year ago.
Canada’s economy is projected to continue their growth through the end of 2018.
About the RLB Quarterly Construction Cost Report
In its North American Quarterly Construction Cost report, RLB tracks construction costs in 14 American cities and two Canadian cities, providing a market-by-market look at construction costs. The report also surveys specific construction sectors—including hospitality, retail, healthcare, office, residential, industrial, and education—identifying low and high construction costs in each urban center.
Together with international and national cost compendia, the cost research equips clients with complete and relevant information to assist in key business decisions.