2016 was a good year for the U.S. construction industry, according to data in Rider Levett Bucknall’s latest quarterly construction cost report
“It’s hard to predict the long-term implications from the Trump Presidency,” says Julian Anderson, President of RLB North America, “but on balance RLB expects that, barring some external shock of the economy, 2017 should be another positive year for construction generally.”
The national average increase in construction cost was approximately 1.0%
The firm’s research shows that from July 1, 2016 through October 1, 2016 Boston, Chicago, Denver, New York, Portland, San Francisco, Seattle, and Washington, D.C. all saw increases of more than 1%, while Las Vegas, Los Angeles, and Phoenix experienced increases below 1%. For the first time since 2010, Honolulu saw a slight decrease of 0.64%.
RLB’s detailed data provides a heightened perspective when viewed alongside statistics on a national scale, compiled by the U.S. Department of Commerce and other sources. Construction put-in-place ended at a seasonally-adjusted annual rate of $1.15 trillion or 0.4 percent below the revised August estimate. General unemployment was down and the AIA’s Architecture Billing Index, the leading economic indicator for non-residential activity, remained in positive territory in November.
All of this appears against a backdrop of a generally improving economy, which experienced a GDP growth of 3.2% as of the third quarter of 2016, according to the Bureau of Economic Analysis.
About the Rider Levett Bucknall Quarterly Construction Cost Report
Rider Levett Bucknall reports on the comparative costs of construction in 12 U.S. cities on a quarterly basis, indexing them to show how costs are changing in each city, as well as against the costs of the other 11 locations. Together with additional international and national cost compendia, the cost research equips clients with complete and relevant information to assist in business decisions.
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