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
| Jan 31, 2013
The Opus Group completes construction of corporate HQ for Church & Dwight Co.
The Opus Group announced today the completion of construction on a new 250,000-square-foot corporate headquarter campus for Church & Dwight Co., Inc., in Ewing Township, near Princeton, N.J.
| Jan 31, 2013
Map of U.S. illustrates planning times for commercial construction
Stephen Oliner, a UCLA professor doing research for the Federal Reserve Board, has made the first-ever estimate of planning times for commercial construction across the United States.
| Jan 29, 2013
Tutor Perini Corp. to Implement Textura Prequalification Management Companywide
Rollout across the Tutor Perini organization will enhance the subcontractor prequalification experience and enable a standardized process in support of the contractor default insurance program.
| Jan 22, 2013
Midwestern Construction Company Acquires Local Architecture Firm
St. Charles, Ill.-based design/build and construction firm acquires architecture firm.
| Jan 16, 2013
2013 40 Under 40 application process now open
Building Design+Construction's 40 Under 40 is open to AEC professionals from around the globe.
| Jan 15, 2013
Hill International selected as PM for Secon Nile Towers in Cairo
The Secon Nile Towers will feature two 23-story buildings: one five-star hotel tower and one residential and retail tower.
| Jan 10, 2013
Guide predicts strongest, weakest AEC markets for 2013
2013 Guide to U.S. AEC markets touts apartments, natural gas, senior housing and transmission and distribution.
