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 6, 2012
Welton promoted to principal in Thornton Tomasetti’s Denver office
Welton serves as the manager of the firm’s Denver office and has more than 30 years of structural engineering experience across a range of project types including sports, commercial and residential.
| Aug 3, 2012
Goettsch Partners opens new Abu Dhabi office
The GP Abu Dhabi office is managed by Steven M. Nilles, FAIA, LEED AP, a partner in the firm and resident of Abu Dhabi.
| Aug 3, 2012
Nonres construction spending to increase through 2012, growth projected for 2013
Commercial and industrial projects poised to lead building sectors.
| Aug 1, 2012
C.W. Driver forms Driver URBAN
Driver URBAN specializes in the construction of multi-family apartments, mixed-use developments, affordable housing, student and senior housing, and hospitality projects.
| Aug 1, 2012
CFSI ranked among Top 10 Mechanical Contractors in D.C.
Included in the Washington Business Journal list for the second year running.
| Jul 31, 2012
Thornton Tomasetti announces four promotions in Chicago office
Promotions in Thornton Tomasetti office key on industy veterans.
| Jul 25, 2012
Contract awarded for Gaillard Municipal Auditorium renovations in Charleston, S.C.
Seeking LEED Silver certification, the project will begin in August and is slated for completion in December 2014.
| Jul 25, 2012
Hill International selected as project manager for two Abu Dhabi hospitals
The two hospitals have a combined estimated project value of approximately AED 784 million ($213 million).
| Jul 25, 2012
KBE Building renovates UConn dining hall
Construction for McMahon Dining Hall will be completed in September 2012.
| Jul 24, 2012
Dragon Valley Retail at epicenter of Yongsan International Business District
Masterplanned by architect Daniel Libeskind, the Yongsan IBD encompasses ten city blocks and includes a collection of high-rise residences and commercial buildings.
