The latest QCR charts construction trends in cities throughout North America; new research indicates that construction cost inflation is stabilizing
This edition of our QCR features the Hawaii Community Federal Credit Union Kailua-Kona Branch. Click here to learn more about how RLB played a pivotal role in the branch renovation from the planning stages through construction and turnover of the project, which stands as a tribute to the past while embracing the future.
With current data from mid-Q4 2024, the latest RLB quarterly cost report shows that the national average increase in construction costs was 1.11 percent, similar to the previous two quarters, with Boston, Chicago, Honolulu, Las Vegas, Phoenix, Seattle, and Washington DC experiencing increases over the national average this quarter. Denver, Los Angeles, New York, Portland, and San Francisco experienced gains that were less than the national average.
“The construction industry’s resilience shines as we tackle market uncertainties with innovation, from stabilizing costs to embracing workforce development and technological integration. While challenges persist, including inflation, tariffs, and labor shortages, our focus remains on creating new solutions and opportunities that will drive growth and ensure our continued success.”
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 1.11 percent and 4.69 percent year-over-year
- The construction unemployment rate is 3.7 percent, down .1 percent in the same time period last year
- Following a twenty-month period of decline, the Architectural Billings Index (ABI) is 50.3 and shows a balance between firms with increased and decreased billings
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