Construction costs are up 1.29% from Q4 and to 5.85% year-over-year.
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The latest RLB quarterly cost report, with data current to mid-Q1 2024, shows that the national average increase in construction costs was 1.29 percent, which is similar to pre-pandemic levels. Boston, Chicago, Honolulu, Los Angeles, New York, and Washington D.C. all experienced increases over the national average this quarter. Denver, Las Vegas, Phoenix, Portland, San Francisco, and Seattle experienced gains that were less than the national average.
After the past few years of economic uncertainty, I am cautiously optimistic about the construction industry in 2024. Despite having reached extremely high peaks, prices for construction materials are finally on a downward trajectory. While the growth of privately funded projects may be soft, public funding for manufacturing and infrastructure projects will help drive industry growth.
Paul Brussow, President of RLB North America
A few key insights:
The chart below shows a comparative map of the annual percentage change for the U.S.
- The U.S. quarterly national average increase in construction cost is approximately 1.29 percent, compared to 5.85 percent year-over-year
- The construction unemployment rate is holding steady at 4.4 percent as compared to the same period last year
- The Architectural Billings Index (ABI) in February was 49.5, suggesting that the recent slowdown may be receding and up from the previous month’s score of 46.2
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