A study of six major metropolitan areas concludes that nonresidential construction costs, on average, will rise between 3% and 4% this year.
The Construction Cost Index report, released quarterly by Mortenson Construction, measures construction costs by pricing representative nonresidential construction projects in Chicago, Milwaukee, Minneapolis-St. Paul, Phoenix, Denver, and Seattle.
"There continues to be a lot of activity in the markets we track, although average project size is reduced relative to recent years," Clark Taylor, VP of Estimating at Mortenson, said in a statement. "Construction employment is leveling out and price escalation should be more consistent with long-term averages. We believe this should allow customers to more accurately plan for increases in the next year."
Highlights of the report include:
• Chicago's cost index increased 4.6% throughout 2015.
• Denver saw double-digit growth in construction employment in 2015, but the rate has plateaued since mid-2014.
• Milwaukee's construction labor market trend fell eight points year-over-year in 2015.
• Construction activity in Minneapolis-St. Paul grew, but at a slower pace than in previous years.
• Phoenix's cost index was 2.8% above year-end 2014.
• Seattle had double-digit employment growth for the third year.
Related Stories
Market Data | Jan 16, 2019
AIA 2019 Consensus Forecast: Nonresidential construction spending to rise 4.4%
The education, public safety, and office sectors will lead the growth areas this year, but AIA's Kermit Baker offers a cautious outlook for 2020.
Market Data | Dec 19, 2018
Brokers look forward to a commercial real estate market that mirrors 2018’s solid results
Respondents to a recent Transwestern poll expect flat to modest growth for rents and investment in offices, MOBs, and industrial buildings.
Market Data | Dec 19, 2018
When it comes to economic clout, New York will far outpace other U.S. metros for decades to come
But San Jose, Calif., is expected to have the best annual growth rate through 2035, according to Oxford Economics’ latest Global Cities report.
Market Data | Dec 19, 2018
Run of positive billings continues at architecture firms
November marked the fourteenth consecutive month of increasing demand for architectural firm services.
Market Data | Dec 5, 2018
ABC predicts construction sector will remain strong in 2019
Job growth, high backlog and healthy infrastructure investment all spell good news for the industry.
Market Data | Dec 4, 2018
Nonresidential spending rises modestly in October
Thirteen out of 16 subsectors are associated with year-over-year increases.
Market Data | Nov 20, 2018
Construction employment rises from October 2017 to October 2018 in 44 states and D.C.
Texas has biggest annual job increase while New Jersey continues losses; Iowa, Florida and California have largest one-month gains as Mississippi and Louisiana trail.
Market Data | Nov 15, 2018
Architecture firm billings continue to slow, but remain positive in October
Southern region reports decline in billings for the first time since June 2012.
Market Data | Nov 14, 2018
A new Joint Center report finds aging Americans less prepared to afford housing
The study foresees a significant segment of seniors struggling to buy or rent on their own or with other people.
Market Data | Nov 12, 2018
Leading hotel markets in the U.S. construction pipeline
Projects already under construction and those scheduled to start construction in the next 12 months, combined, have a total of 3,782 projects/213,798 rooms and are at cyclical highs.
