End-of-the-Year Quarterly Cost Report Reveals Latest Construction Trends in North American Cities
As 2022 comes to a close, the construction industry continues to face a variety of challenges. Labor remains in relatively short supply. Supply chain issues, while easing, remain. Costs continue to escalate, albeit at a slowing pace. The Federal Reserve’s efforts to crush pandemic era inflation have started to work, resulting in a downturn for the housing industry and depressing starts in non-residential construction.
“As we navigate through the many and varied challenges and contemplate the year ahead, I recommend that developers, designers, and contractors remain agile and on constant alert for any signals that the trajectory of the industry might change.”Julian Anderson, FRICS, President of RLB North America
A few key highlights:
- The U.S. quarterly national average increase in construction cost is approximately 1.88%, Boston, Phoenix, Portland, Seattle, and Washington, D.C. all experienced greater-than-average quarterly increases.
- The U.S. Gross Domestic Product (GDP) recovers from a decline in Q1 and Q2, returning to 2.9% in the third quarter.
- The Architectural Billings Index (ABI) reports 46.6 during November, with architecture firms continuing to report a steady decline in their business conditions.