Denver Construction Costs Above National Average
International property and construction consultancy firm Rider Levett Bucknall (RLB) has released its midyear Quarterly Cost Report. The report provides an on-the-ground picture of construction activity in 14 key North American markets, including Denver, as well as data-driven insights into the industry for the second quarter of 2022.
Like many industries right now, the construction industry is facing a significant workforce shortage that is hindering the industry’s ability to maximize the amount of construction activity that could be taking place. In the past two months, spending on nonresidential construction has declined, with many industry experts attributing this to the workforce shortage.
While facing workforce shortages is not a new challenge for our industry, the current shortage is one factor in a confluence of ongoing issues including the pandemic, supply chain challenges for raw materials and finished products, rising fuel prices, and the transportation industry’s own workforce shortage.
“The workforce shortage is pervasive through every aspect of our industry right now,” said Julian Anderson, FRICS, president of RLB North America. “While the workforce shortage is just one piece of a larger set of challenges we are facing right now, it’s important we strive to have the appropriate workforce numbers in place as we prepare for the future.”
Quarterly Cost Report notes:
- The U.S. quarterly national average increase in construction cost is approximately 2.4%, compared to 7.5% year-over-year
- In Denver, construction costs increased 2.52% in Q2, compared to 8.16 % year-over-year
Chicago, Denver, and New York all experienced increases above the quarterly national average during Q2 2022.
- The U.S. Gross Domestic Product (GDP) has decreased at an annual rate of 1.5% following an increase of 6.9% in the previous quarter
- The Architectural Billings Index (ABI) soar to 58 from the previous quarter’s 51
Read the complete QCR Q2 report here.