New Quarterly Cost Report provide an eye-opening perspective on the North American construction industry in 14 key markets.
This edition of our QCR features the University of Arizona Facilities Management HQ. Click here to learn more about how RLB afforded UofA the level of certainty they need to make critical, real-time decisions for their reimagined project.
With data current to mid-Q1 2023, the latest RLB quarterly cost report shows that the national average increase in construction costs was nearly 1.4 percent over the previous quarter with Boston, New York, Phoenix, Portland, Seattle, and San Francisco all experiencing increases over the national average this quarter. Chicago, Denver, Honolulu, Las Vegas, Los Angeles and Washington DC experienced gains were less than the national average.
“There’s an air of economic uncertainty lingering over 2023, especially around oil prices and unresolved bank stress. As compared to last year at this time, things look difficult, but for different reasons. On the bright side, inflation seems to be leaning in the right direction, and other challenges like workforce development are following suit.”Julian Anderson, FRICS, President of RLB North America
A few key highlights:
- The U.S. quarterly national average increase in construction cost is approximately 1.4 percent, compared to 8.11 percent year-over-year
- The construction unemployment rate is up down slightly to 4.4 percent from 5.0 percent in the same time period last year
- The Architectural Billings Index (ABI) is 49.3, reporting less than 50 for four consecutive months.