Rider Levett Bucknall’s (RLB’s) latest Crane Index and Quarterly Cost Report shows continued decreasing cost inflation and crane counts increasing or holding steady in 10 of the 14 major markets it surveyed. The national average increase in construction costs was 1.07%, the lowest it’s been in the last three years.
Boston, Denver, Honolulu, New York, Seattle, and Washington D.C. all experienced cost increases in excess of the national average this quarter. Chicago, Las Vegas, Los Angeles, Phoenix, Portland, and San Francisco experienced gains that were less than the national average.
Calgary, Chicago, Honolulu, Las Vegas, Phoenix, Toronto, and Washington D.C. saw an increase in crane counts during the third quarter. Denver, Los Angeles, and New York City are holding steady in their crane counts. Cities with a decrease include Boston, Portland, San Francisco, and Seattle.
The Federal Reserve’s recent easing of interest rates bodes well for next year, RLB says. “The recent interest rate cut is good news for the construction industry, particularly the private sector,” says Paul Brussow, president of RLB North America. “While we won’t see an immediate impact, this move is likely to encourage investment in new projects as we head into 2025.”
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