A study of six major metropolitan areas concludes that nonresidential construction costs, on average, will rise between 3% and 4% this year.
The Construction Cost Index report, released quarterly by Mortenson Construction, measures construction costs by pricing representative nonresidential construction projects in Chicago, Milwaukee, Minneapolis-St. Paul, Phoenix, Denver, and Seattle.
"There continues to be a lot of activity in the markets we track, although average project size is reduced relative to recent years," Clark Taylor, VP of Estimating at Mortenson, said in a statement. "Construction employment is leveling out and price escalation should be more consistent with long-term averages. We believe this should allow customers to more accurately plan for increases in the next year."
Highlights of the report include:
• Chicago's cost index increased 4.6% throughout 2015.
• Denver saw double-digit growth in construction employment in 2015, but the rate has plateaued since mid-2014.
• Milwaukee's construction labor market trend fell eight points year-over-year in 2015.
• Construction activity in Minneapolis-St. Paul grew, but at a slower pace than in previous years.
• Phoenix's cost index was 2.8% above year-end 2014.
• Seattle had double-digit employment growth for the third year.
Related Stories
Market Data | Feb 16, 2017
How does your hospital stack up? Grumman/Butkus Associates 2016 Hospital Benchmarking Survey
Report examines electricity, fossil fuel, water/sewer, and carbon footprint.
Market Data | Feb 1, 2017
Nonresidential spending falters slightly to end 2016
Nonresidential spending decreased from $713.1 billion in November to $708.2 billion in December.
Market Data | Jan 31, 2017
AIA foresees nonres building spending increasing, but at a slower pace than in 2016
Expects another double-digit growth year for office construction, but a more modest uptick for health-related building.
High-rise Construction | Jan 23, 2017
Growth spurt: A record-breaking 128 buildings of 200 meters or taller were completed in 2016
This marks the third consecutive record-breaking year for building completions over 200 meters.
Market Data | Jan 18, 2017
Fraud and risk incidents on the rise for construction, engineering, and infrastructure businesses
Seven of the 10 executives in the sector surveyed in the report said their company fell victim to fraud in the past year.
Market Data | Jan 18, 2017
Architecture Billings Index ends year on positive note
Architecture firms close 2016 with the strongest performance of the year.
Market Data | Jan 12, 2017
73% of construction firms plan to expand their payrolls in 2017
However, many firms remain worried about the availability of qualified workers.
Market Data | Jan 9, 2017
Trump market impact prompts surge in optimism for U.S. engineering firm leaders
The boost in firm leader optimism extends across almost the entire engineering marketplace.
Market Data | Jan 5, 2017
Nonresidential spending thrives in strong November spending report
Many construction firms have reported that they remain busy but have become concerned that work could dry up in certain markets in 2017 or 2018, says Anirban Basu, ABC Chief Economist.
Market Data | Dec 21, 2016
Architecture Billings Index up slightly in November
New design contracts also return to positive levels, signifying future growth in construction activity.