Construction Cost Increase Is the Lowest It’s Been in Three Years; up 1.07% , compared to 4.91% year-over-year (4.28% annualized)
This edition of our QCR features the Rob and Melani Walton Center for Planetary Health. Click here to learn more about how RLB aided Arizona State University’s (ASU) in advancing their sustainability goals within the realms of food, energy, and water by building the Interdisciplinary Science and Technology Building VII (ISB7), the cornerstone of ASU’s expanded research neighborhood.
The latest RLB quarterly cost report, with data current to mid-Q3 2024, shows that the national average increase in construction costs was 1.07 percent, the lowest it’s been in the last three years. Boston, Denver, Honolulu, New York, Seattle, and Washington D.C. all experienced increases over the national average this quarter. Chicago, Las Vegas, Los Angeles, Phoenix, Portland, and San Francisco experienced gains that were less than the national average.
“Our research shows that the trend of construction cost inflation continues declining and is the lowest it’s been in three years. The recent interest rate cut is good news for the construction industry, particularly the private sector. While we won’t see an immediate impact, this move is likely to encourage investment in new projects as we head into 2025.”
Paul Brussow, President of RLB North America
The first chart (below) shows a comparative map of the annual percentage change for the U.S.; the second chart shows the same comparative map for Canada.
A few key insights:
- The U.S. quarterly national average increase in construction cost is approximately 1.07%, compared to 4.91% year-over-year (4.28% annualized)
- The construction unemployment rate is 3.2%, down 0.7%from the same period last year
- The Architectural Billings Index (ABI) in August was 45.7, a continued decrease from 48.2 in July
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