International property and construction consultancy firm Rider Levett Bucknall (RLB) has released its latest Crane Index and Quarterly Cost Report, providing an eye-opening perspective on the North American construction industry in 16 key markets.
The latest RLB quarterly cost report, with data current to mid-Q1 2025, shows that the national average change in construction costs was 0.98% in Q1, which was down from 1.11% in Q4; congruently, the year-over-year rate is 4.35%, down from 5.86% this time last year. Boston, Chicago, Honolulu, Portland, and Seattle experienced increases in construction costs over the national average this quarter, while Denver, Las Vegas, Los Angeles, Nashville, Miami, Phoenix, San Francisco, and Washington, D.C. experienced gains less than the national average.
“While the media focuses on potential tariff wars and inflation spikes, our research presents a clearer, more measured view,” says Paul Brussow, president of RLB North America. “Economic shifts have yet to significantly impact construction and project costs, and though broader factors may eventually play a role, I feel the true challenge is rising labor costs. We will continue to rely on careful analysis based on reliable data to guide successful decision-making. I am confident in the industry’s resiliency; challenges will arise, and we will adapt.”
Crane Index notes
- Crane counts have increased in New York City and Toronto.
- Boston, Calgary, Honolulu, Los Angeles, and Las Vegas are holding steady in their crane counts.
- Cities with a more than 20 percent decrease include Chicago, Denver, Phoenix, Portland, San Francisco, Seattle, and Washington, D.C.
Quarterly Cost Report notes
- The U.S. national average increase in construction cost is approximately 0.98 percent in Q1, compared to 1.11 percent in Q4
- The construction unemployment rate is 5.4 percent, down from 5.7 percent during the same period last year
- The Architectural Billings Index (ABI) in January was 45.6, a slight increase from 44.6 in December
Read the complete QCR report RLB Construction Cost Report North America Q1 2025 – Rider Levett Bucknall
The Crane Index is RLB Crane Index® North America Q1 2025 – Rider Levett Bucknall
