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
| Aug 11, 2010
Gilbane, Whiting-Turner among nation's largest university contractors, according to BD+C's Giants 300 report
A ranking of the Top 50 University Contractors based on Building Design+Construction's 2009 Giants 300 survey. For more Giants 300 rankings, visit /giants
| Aug 11, 2010
Suffolk breaks ground on colorful charter school in Boston
Suffolk Education has broken ground and began renovations and construction of a new $39.6 million facility to house the Boston Renaissance Charter Public School. The Suffolk team is renovating an existing, three-story mill building and warehouse in the Hyde Park section of Boston, Massachusetts, and constructing a 20,000 square-foot addition.
| Aug 11, 2010
McCarthy, Skanska among nation's largest healthcare contractors, according to BD+C's Giants 300 report
A ranking of the Top 50 Healthcare Contractors based on Building Design+Construction's 2009 Giants 300 survey. For more Giants 300 rankings, visit http://www.BDCnetwork.com/Giants
| Aug 11, 2010
Turner, Webcor, Hensel Phelps top BD+C's list of the 75 largest green contractors
With more than $3 billion in value of construction put in place for green buildings in 2008, Turner Construction tops BD+C’s ranking of the nation’s 75 largest green contractors, published as part of the Giants 300 report. Webcor Builders ($2.27 billion), Hensel Phelps Construction ($2.10 billion), The Whiting-Turner Contracting Co. ($1.97 billion), and Clark Group ($1.89 billion) round out the top five.
| Aug 11, 2010
Installation work begins on Minnesota's largest green roof
Installation of the 2.5 acre green roof vegetation on the City-owned Target Center begins today. Over the course of two days a 165 ton crane will hoist five truckloads of plant material, which includes 900 rolls of pre-grown vegetated mats of sedum and native plants for installation on top of the arena's main roof.
| Aug 11, 2010
Jacobs, Holder Construction top BD+C's ranking of the nation's 50 largest industrial building contractors
A ranking of the Top 50 Industrial Contractors based on Building Design+Construction's 2009 Giants 300 survey. For more Giants 300 rankings, visit http://www.BDCnetwork.com/Giants
| Aug 11, 2010
AASHE releases annual review of sustainability in higher education
The Association for the Advancement of Sustainability in Higher Education (AASHE) has announced the release of AASHE Digest 2008, which documents the continued rapid growth of campus sustainability in the U.S. and Canada. The 356-page report, available as a free download on the AASHE website, includes over 1,350 stories that appeared in the weekly AASHE Bulletin last year.
