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 | Nov 27, 2017
Construction's contribution to U.S. economy highest in seven years
Thirty-seven states benefited from the rise in construction activity in their state, while 13 states experienced a reduction in activity.
Market Data | Nov 15, 2017
Architecture Billings bounce back
Business conditions remain uneven across regions.
Market Data | Nov 14, 2017
U.S. construction starts had three consecutive quarters of positive growth in 2017
ConstructConnect’s quarterly report shows the most significant annual growth in the civil engineering and residential sectors.
Market Data | Nov 3, 2017
New construction starts in 2018 to increase 3% to $765 billion: Dodge report
Dodge Outlook Report predicts deceleration but still growth, reflecting a mixed pattern by project type.
Market Data | Nov 2, 2017
Construction spending up in September; Down on a YOY basis
Nonresidential construction spending is down 2.9% on a year-over-year basis.
Market Data | Oct 19, 2017
Architecture Billings Index backslides slightly
Business conditions easing in the West.
Industry Research | Oct 3, 2017
Nonresidential construction spending stabilizes in August
Spending on nonresidential construction services is still down on a YOY basis.
Market Data | Sep 21, 2017
Architecture Billings Index continues growth streak
Design services remain in high demand across all regions and in all major sectors.
Market Data | Sep 21, 2017
How brand research delivers competitive advantage
Brand research is a process that firms can use to measure their reputation and visibility in the marketplace.
Contractors | Sep 19, 2017
Commercial Construction Index finds high optimism in U.S. commercial construction industry
Hurricane recovery efforts expected to heighten concerns about labor scarcities in the south, where two-thirds of contractors already face worker shortages.
