RLB’s Latest QCR Charts Construction Trends in Cities Throughout North America
With data current to mid-Q3 2021, the latest RLB quarterly cost report shows that the national average increase in construction costs was approximately 1.51% for the quarter. Boston, Los Angeles, Seattle, and Washington D.C. all experienced increases greater than the national average, while Chicago, Denver, Honolulu, Las Vegas, New York, Phoenix, Portland, and San Francisco saw gains less than the national average.
With materials prices continuing to increase and construction starts down across most sectors, the pressure is on contractors to bid competitively.
“Since July 2020, contractor’s bid prices have grown 4.4%, while over the same period, the Producer Price Index for softwood lumber has increased 25.6%. This has significant implications for the construction businesses, as well as other players in the AEC industries.”Julian Anderson, FRICS, President of RLB North America
A Few Key Highlights:
- The U.S. quarterly national average increase in construction cost is approximately 1.51%, compared to 5.77% year-over-year
- The construction unemployment rate drops to 7.5%, while the national unemployment rate dips to 5.9%
- The Architectural Billings Index (ABI) rises to 57.1