Construction costs are up 1.53% from Q3 and to 5.28% year-over-year.
This edition of our QCR features the University of Arizona’s new Applied Research Building. Click here to learn more about how RLB delivered a cutting-edge technology facility to enable students to conduct specialized research.
With current data from mid-Q4 2023, the latest RLB quarterly cost report shows that the national average increase in construction costs was 1.32 percent over the previous quarter, with Boston, Chicago, Honolulu, Portland, Seattle, and Washington D.C. experiencing increases over the national average this quarter. Denver, Las Vegas, Los Angeles, New York, Phoenix, and San Francisco experienced gains that were less than the national average.
“While there are a lot of positive indicators for the industry right now, including consumer confidence, moderating inflation, and low unemployment, there are still enough other indicators showing us that the economic uncertainty hasn’t become any clearer. The newest numbers on the ABI, the chronic workforce challenges, and potential soft recession still feed the uncertainty and a potential slowdown for 2024.”
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 1.53 percent and 5.28 percent year-over-year, or 6.12 percent annualized.
- The construction unemployment rate is down slightly to 3.8 percent from 3.4 percent in the same period last year.
- The Architectural Billings Index (ABI) is 44.3, the third month in a row of significant decreases.
FURTHER INFORMATION:
