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 | Jun 7, 2016
Global construction disputes took longer to resolve in 2015
The good news: the length and value of disputes in the U.S. fell last year, according to latest Arcadis report.
Market Data | Jun 3, 2016
JLL report: Retail renovation drives construction growth in 2016
Retail construction projects were up nearly 25% year-over-year, and the industrial and office construction sectors fared well, too. Economic uncertainty looms over everything, however.
Market Data | Jun 2, 2016
ABC: Nonresidential construction spending down in April
Lower building material prices, a sluggish U.S. economy, and hesitation among private developers all factor into the 2.1% drop.
Market Data | May 20, 2016
Report: Urban area population growth slows
Older Millennials are looking to buy homes and move away to more affordable suburbs and exurbs.
Market Data | May 17, 2016
Modest growth for AIA’s Architecture Billings Index in April
The American Institute of Architects reported the April ABI score was 50.6, down from the mark of 51.9 in the previous month. This score still reflects an increase in design services.
Market Data | Apr 29, 2016
ABC: Quarterly GDP growth slowest in two years
Bureau of Economic Analysis data indicates that the U.S. output is barely growing and that nonresidential investment is down.
Market Data | Apr 20, 2016
AIA: Architecture Billings Index ends first quarter on upswing
The multi-family residential sector fared the best. The Midwest was the only U.S. region that didn't see an increase in billings.
Building Technology | Apr 11, 2016
A nascent commercial wireless sensor market is poised to ascend in the next decade
Europe and Asia will propel that growth, according to a new report from Navigant.
Industry Research | Apr 7, 2016
CBRE provides latest insight into healthcare real estate investors’ strategies
Survey respondents are targeting smaller acquisitions, at a time when market cap rates are narrowing for different product types.
Market Data | Apr 4, 2016
ABC: Nonresidential spending slip in February no cause for alarm
Spending in the nonresidential sector totaled $690.3 billion on a seasonally adjusted, annualized basis in February. The figure is a step back but still significantly higher than one year ago.
