Coldwell Banker Richard Ellis (CBRE) is forecasting a 14.1% year-on-year increase in U.S. construction costs by the close of 2022.
It is the largest jump since CBRE began making cost projections in 2007. The firm cited financial pressures such as inflation, labor shortages, supply chain challenges, Covid-19, and Russia’s invasion of Ukraine as causes for the sharp rise.
CBRE predicts relief next year, with cost inflation falling to 4.3% and further moderation to 2.9% in 2024. Although the firm sees inflation and supply chain problems receding over the next two years, it foresees that delays in material deliveries, labor scarcity, and semiconductor shortages will endure.
The firm’s forecast notes that demand for new projects remains strong despite cost pressures.
Related Stories
Contractors | Oct 1, 2015
Nonresidential construction spending expands for seventh consecutive month
Spending totaled $696.3 billion on a seasonally adjusted, annualized basis in August, a 0.3% increase from the previous month.
Airports | Sep 30, 2015
Takeoff! 5 ways high-flyin' airports are designing for rapid growth
Nimble designs, and technology that humanizes the passenger experience, are letting airports concentrate on providing service and generating revenue.
Contractors | Sep 30, 2015
FMI: Construction in place on track for sustained growth through 2016
FMI’s latest report singles out manufacturing, lodging, and office sectors as the drivers of nonresidential building activity and investment.
![What went wrong? Diagnosing building envelope distress [AIA course]](/sites/default/files/styles/list_big/public/Screen%20shot%202015-09-29%20at%209.46.33%20AM.png?itok=QDq8CQJv "What went wrong? Diagnosing building envelope distress [AIA course]")
Reconstruction & Renovation | Sep 29, 2015
What went wrong? Diagnosing building envelope distress [AIA course]
With so many diverse components contributing to building envelope assemblies, it can be challenging to determine which of these myriad elements was the likely cause of a failure.
Modular Building | Sep 23, 2015
SOM and DOE unveil 3D-printed, off-the-grid building
The Additive Manufacturing Integrated Energy (AMIE) building features a high-performance shell with a photovoltaic roof and built-in natural gas generator.
Sports and Recreational Facilities | Sep 21, 2015
Tokyo Olympic Stadium saga ends for Zaha Hadid
After resubmitting a bid, the firm will not design the main venue for the 2020 Olympics after all.
Giants 400 | Sep 17, 2015
CONVENTION CENTER SECTOR GIANTS: Gensler, AECOM, Turner top rankings of nation's largest convention/events sector AEC firms
BD+C's rankings of the nation's largest convention/events sector design and construction firms, as reported in the 2015 Giants 300 Report.
Giants 400 | Sep 17, 2015
AIRPORT SECTOR GIANTS: KPF, Hensel Phelps, Jacobs top rankings of nation's largest airport terminal sector AEC firms
BD+C's rankings of the nation's largest airport terminal sector design and construction firms, as reported in the 2015 Giants 300 Report.
Giants 400 | Sep 15, 2015
HOTEL SECTOR GIANTS: Gensler, AECOM, Turner among nation's largest hotel sector AEC firms
BD+C's rankings of the nation's largest hotel sector design and construction firms, as reported in the 2015 Giants 300 Report.
Contractors | Sep 14, 2015
Gilbane report: Nonres building on brink of ‘breakout’ spending year
Total construction spending is on pace to achieve double-digit growth in 2015, and a strong single-digit increase next year. But finding labor will be tough.
