Gordian’s Q1 2024 Quarterly Construction Cost Insights Report brings good news on construction material prices: Although there are some materials whose prices have continued to show volatility, costs at a macro level are returning to a level of stability, suggesting predictable historical price escalation factors.
The Q1 2024 Gordian data analysis focuses primarily on:
- Fiberglass insulation
- Structural steel
- Framing lumber
- Copper electric wire
- Concrete block
- Conduit
Ups and downs of the construction material prices
As the interest in eco-friendly materials increases, the construction industry is taking note, developing products to meet the demand of green building certification. One such product has been significantly affected by this trend: fiberglass insulation. The high demand for it is discussed in depth in this report, a demand which continues unabated from previous quarters. Since Q2 2021, the price for blanket fiberglass material has nearly doubled. In addition to the movement toward energy efficiency in residential construction, Gordian attributes this to a boom in the home building market; greater government regulation for home insulation; and the lingering effects of COVID-19 on manufacturing.
Copper electric wire now remains steady from Q4 2023, exhibiting a slight decrease year-over-year. Price increases in the latter half of 2022 were driven by the shutdown of operations in copper mines in Peru and Panama, although it’s not known at this time if mining will resume.
Gordian also reports a significant downward trend in the cost of drywall. Post-pandemic, per-square-foot prices have dropped 11 percent from their highest point, seen less than just a year ago. Over the course of the past year, framing lumber has also seen a major decline in cost of nearly 19 percent.
Be prepared for construction material price variability
The experts say that while they expect improved pricing predictability at a high level for the balance of 2024, materials costs will each exhibit their own degree of variability based on a number of different factors. They advise that preparation is key, including analysis of localized cost trends while project planning. The full Gordian report contains a city cost index overview, including pricing changes between Q4 2023 and Q1 2024 for numerous major metropolitan areas in the U.S. and Canada. In the western U.S., for example, overall prices are trending toward a modest increase, but the variability does not seem tightly tied to geography alone.
With the pandemic behind us, a gradual stabilization is expected in 2024. However, raw materials shortages, weather events, and geopolitical unrest all introduce a level of unpredictability, and construction professionals are advised to keep an eye on the supply chain.
Related Stories
Construction Costs | May 16, 2024
New download: BD+C's May 2024 Market Intelligence Report
Building Design+Construction's monthly Market Intelligence Report offers a snapshot of the health of the U.S. building construction industry, including the commercial, multifamily, institutional, and industrial building sectors. This report tracks the latest metrics related to construction spending, demand for design services, contractor backlogs, and material price trends.
K-12 Schools | May 15, 2024
A new Alabama high school supports hands-on, collaborative, and diverse learning
In Gulf Shores, a city on Alabama’s Gulf Coast, a new $137 million high school broke ground in late April and is expected to open in the fall of 2026. Designed by DLR Group and Goodwyn Mills Cawood, the 287,000-sf Gulf Shores High School will offer cutting-edge facilities and hands-on learning opportunities.
Contractors | May 15, 2024
The average U.S. contractor has 8.4 months worth of construction work in the pipeline, as of April 2024
Associated Builders and Contractors reported that its Construction Backlog Indicator increased to 8.4 months in April, according to an ABC member survey conducted April 22 to May 6. The reading is down 0.5 months from April 2023, but expanded 0.2 months from the prior month.
Affordable Housing | May 14, 2024
Brooklyn's colorful new affordable housing project includes retail, public spaces
A new affordable housing development located in the fastest growing section of Brooklyn, N.Y., where over half the population lives below the poverty line, transformed a long vacant lot into a community asset. The Van Sinderen Plaza project consists of a newly constructed pair of seven-story buildings totaling 193,665 sf, including 130 affordable units.
University Buildings | May 10, 2024
UNC Chapel Hill’s new medical education building offers seminar rooms and midsize classrooms—and notably, no lecture halls
The University of North Carolina at Chapel Hill has unveiled a new medical education building, Roper Hall. Designed by The S/L/A/M Collaborative (SLAM) and Flad Architects, the UNC School of Medicine’s new building intends to train new generations of physicians through dynamic and active modes of learning.
MFPRO+ News | May 10, 2024
HUD strengthens flood protection rules for new and rebuilt residential buildings
The U.S. Department of Housing and Urban Development (HUD) issued more stringent flood protection requirements for new and rebuilt homes that are developed with, or financed with, federal funds. The rule strengthens standards by increasing elevations and flood-proofing requirements of new properties in areas at risk of flooding.
Government Buildings | May 10, 2024
New federal buildings must be all-electric by 2030
A new Biden Administration rule bans the use of fossil fuels in new federal buildings beginning in 2030. The announcement came despite longstanding opposition to the rule by the natural gas industry.
Mass Timber | May 8, 2024
Portland's Timberview VIII mass timber multifamily development will offer more than 100 affordable units
An eight-story, 72,000-sf mass timber apartment building in Portland, Ore., topped out this winter and will soon offer over 100 affordable units. The structure is the tallest affordable housing mass timber building and the first Type IV-C affordable housing building in the city.
K-12 Schools | May 7, 2024
World's first K-12 school to achieve both LEED for Schools Platinum and WELL Platinum
A new K-12 school in Washington, D.C., is the first school in the world to achieve both LEED for Schools Platinum and WELL Platinum, according to its architect, Perkins Eastman. The John Lewis Elementary School is also the first school in the District of Columbia designed to achieve net-zero energy (NZE).
Healthcare Facilities | May 6, 2024
Hospital construction costs for 2024
Data from Gordian breaks down the average cost per square foot for a three-story hospital across 10 U.S. cities.
