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 11, 2010
Call for entries: Building enclosure design awards
The Boston Society of Architects and the Boston chapter of the Building Enclosure Council (BEC-Boston) have announced a High Performance Building award that will assess building enclosure innovation through the demonstrated design, construction, and operation of the building enclosure.
| Aug 11, 2010
Portland Cement Association offers blast resistant design guide for reinforced concrete structures
Developed for designers and engineers, "Blast Resistant Design Guide for Reinforced Concrete Structures" provides a practical treatment of the design of cast-in-place reinforced concrete structures to resist the effects of blast loads. It explains the principles of blast-resistant design, and how to determine the kind and degree of resistance a structure needs as well as how to specify the required materials and details.
| Aug 11, 2010
ZweigWhite Announces 2009 Best Firms to Work For
Management consulting and research firm ZweigWhite has identified the best civil engineering, structural engineering, multidiscipline A/E services, environmental services, and architecture firms to work for in its annual ranking of top industry firms. These outstanding employers were selected based on their commitment to provide a positive work environment and challenging and interesting work opportunities for their employees.
| Aug 11, 2010
Manhattan's Pier 57 to be transformed into cultural center, small business incubator, and public park as part of $210 million redevelopment plan
LOT-EK, Beyer Blinder Belle, and West 8 have been selected as the design team for Hudson River Park’s Pier 57 at 15th Street and the Hudson River as part of the development group led by New York-based real estate developer YoungWoo & Associates. The 375,000 square foot vacant, former passenger ship terminal will be transformed into a cultural center, small business incubator, and public park, including a rooftop venue for the Tribeca Film Festival.
| Aug 11, 2010
AGC: Construction employment declines in 47 states in July
Few states were immune from construction employment declines this July based on an analysis of federal employment data released today by the Associated General Contractors of America. That analysis found that 47 states saw declines in construction employment, while only two states saw increases and one saw no change in construction employment between July 2008 and July 2009.
| Aug 11, 2010
AGC: Construction unemployment reaches 19.2%
Unemployment in the construction sector climbed to a “horrendous” 19.2 percent (not-seasonally adjusted) as an additional 59,000 construction workers lost their jobs in May according to new federal data, said construction economist Ken Simonson today.
| Aug 11, 2010
Prism-shaped design unveiled for five-star hotel in Saudi Arabia
Goettsch Partners has been commissioned by Saudi Oger Ltd. to design a new five-star, 214-key business hotel in the King Abdullah Financial District in Riyadh, Saudi Arabia. As a design-build assignment, Saudi Oger is serving as the contractor, selected by developer Rayadah Investment Company. The project is sited on Parcel 1.08, one of the first 10 parcels currently under development in the massive new master-planned district.