Construction costs are up 1.12% from Q1 and up 5.41% year-over-year.
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The latest RLB quarterly cost report, with data current to mid-Q2 2024, shows that the national average increase in construction costs was 1.12 percent over the previous quarter. Boston, Chicago, Denver, Honolulu, Los Angeles, Portland, San Francisco, and Washington DC experienced increases over the national average this quarter. Denver, Las Vegas, New York, Phoenix, and Seattle experienced gains that were less than the national average.
“The construction industry continues to experience strong demand, but uncertainty is being fueled by high interest rates and increasing labor costs for the rest of 2024. The approaching presidential election and potential policy adjustments are also contributing to this uncertainty. Nevertheless, overall growth in the construction sector is expected to remain positive this year.”
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.
- During Q2 2024, the U.S. national average increase in construction cost is approximately 1.12 percent; compared to 1.31 percent in the first quarter.
- Year-over-year, the U.S. national average increase in construction costs is approximately 5.41 percent; compared to 5.85 percent YOY in the first quarter.
- The construction unemployment rate is down slightly to 5.4 percent; down from 5.6 percent in the same period last year
- The Architectural Billings Index (ABI) is 42.4; a decrease of nearly 6 points over the previous month.
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