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
| Feb 26, 2014
Startup PocketCake aims to bring virtual reality simulations to the AEC masses
Founded in 2012, the development firm offers custom virtual reality simulations for the price of a typical architectural illustration.
| Feb 26, 2014
Billie Jean King National Tennis Center serving up three-phase expansion
The project includes the construction of two new stadiums and a retractable roof over the existing Arthur Ashe Stadium.
| Feb 24, 2014
First look: UC San Diego opens net-zero biological research lab
The facility is intended to be "the most sustainable laboratory in the world," and incorporates natural ventilation, passive cooling, high-efficiency plumbing, and sustainably harvested wood.
| Feb 21, 2014
Naturally ventilated hospital planned in Singapore
The Ng Teng Fong General Hospital will take advantage of the region's prevailing breezes to cool the spaces.
| Feb 21, 2014
Calatrava ordered to pay millions for 'shortcomings in his work' on conference center project
Famed architect Santiago Calatrava must pay 2.9 million euros due to faulty design work on the Palacio de Congresos project in Oviedo, Spain.
| Feb 19, 2014
Why you should start with a builder, part two
When it’s time to build or expand, the first step is finding a builder that fits your needs. Once you have found a builder, checked their references, visited with their previous clients and are ready to move forward, the next step is answering an initial set of questions that will direct your project.
| Feb 19, 2014
Obama Administration moves to boost fuel efficiency standards on heavy-duty vehicles
The Obama Administration wants to boost fuel efficiency of medium- and heavy-duty trucks for models made in 2019 and later.
| Feb 19, 2014
Slight rebound for Architecture Billings Index
After consecutive months of contracting demand for design services, AIA's Architecture Billings Index inched up nearly two points to 50.4 in January, indicating favorable business conditions.
| Feb 19, 2014
Harvard's 'termite robots' can build any thing, any way [video]
The robots build by observing thier environment and then obeying a set of traffic rules programmed by researchers.
| Feb 18, 2014
Illinois leads Top 10 states for LEED in annual USGBC ranking
The U.S. Green Building Council has released its ranking of the Top 10 States for LEED, the world’s most widely used and recognized green building rating system.
