New Quarterly Cost Report charts construction trends for 14 key markets in the North American construction industry.
This edition of our QCR features Hyatt House Sacramento. Click here to learn more about how RLB achieved commercial success for this adaptive re-use project at one of Sacramento’s most historic hotels.
With data current to mid-Q2 2023, the latest RLB quarterly cost report shows that the national average increase in construction costs was 1.56 percent over the previous quarter, with Chicago, Denver, Las Vegas, and San Francisco experiencing increases over the national average this quarter. Boston, Honolulu, Las Angeles, Portland, Seattle, and Washington DC experienced gains were less than the national average.
“As we approach the halfway point of 2023, the economic uncertainty hasn’t become any clearer as the year progresses. That uncertainty looms large as economic and workforce shortages concern the construction industry.
While demand for construction remains strong, possible inflation, bank failures, and recession fears still feed the uncertainty and a potential slowdown for 2024.”Julian Anderson, FRICS, President of RLB North America
A few key highlights:
- The U.S. quarterly national average increase in construction cost is approximately 1.56 percent, compared to 7.22 percent year-over-year
- The construction unemployment rate is up down slightly to 5.6 percent from 6.0 percent in the same time period last year
- The Architectural Billings Index (ABI) is 48.5, the sixth time in the last seven months below 50.