International property and construction consultancy firm Rider Levett Bucknall (RLB) has released its Quarterly Cost Report providing an on-the-ground picture of construction activity in 14 key North American markets and data-driven insights into the industry for the fourth quarter of 2022.
The construction industry continues to face a variety of challenges. Labor remains in relatively short supply. Supply chain issues, while easing, remain. Costs continue to escalate, albeit at a slowing pace. The Federal Reserve’s efforts to crush pandemic-era inflation have started to work, resulting in a downturn for the housing industry and depressing starts in non-residential construction.
“As we navigate through the many and varied challenges, and contemplate the year ahead,” said Julian Anderson, FRICS, president of RLB North America. “I recommend that developers, designers, and contractors remain agile and on constant alert for any signals that the trajectory of the industry might change”
Quarterly Cost Report notes:
- The U.S. quarterly national average increase in construction cost is approximately 1.88%, Boston, Phoenix, Portland, Seattle, and Washington, D.C. all experienced greater-than-average quarterly increases.
- In Denver, construction costs increased 1.03% in Q4 (below national average) and 8.67% between October 2021 and October 2022.
- The U.S. Gross Domestic Product (GDP) recovers from a decline in Q1 and Q2, returning to 2.9% in the third quarter.
- The Architectural Billings Index (ABI) reports 46.6 during November, with architecture firms continuing to report a steady decline in their business conditions.
Read the complete QCR report here.
