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
| Sep 16, 2022
Fairfax County, Va., considers impactful code change to reduce flood risk
Fairfax County, Va., in the Washington, D.C., metro region is considering a major code change to reduce the risk from floods.
Multifamily Housing | Sep 15, 2022
Heat Pumps in Multifamily Projects
RMI's Lacey Tan gives the basics of heat pumps and how they can reduce energy costs and carbon emissions in apartment projects.
| Sep 15, 2022
Monthly construction input prices dip in August
Construction input prices decreased 1.4% in August compared to the previous month, according to an Associated Builders and Contractors analysis of U.S. Bureau of Labor Statistics Producer Price Index data released today.
| Sep 15, 2022
First LEED Platinum, net zero and net zero water synagogue opens
Kol Emeth Center, the world’s first LEED Platinum, net zero and net zero water synagogue, opened recently in Palo Alto, Calif.
| Sep 14, 2022
Fires on Amazon warehouse roofs seemingly caused by faulty PV installations
Amazon has made installing solar panels on rooftops a key part of its ESG strategy, but a series of events last year show how challenging greening up major facilities can be.
| Sep 14, 2022
Indian tribe’s new educational campus supports culturally appropriate education
The Kenaitze Indian Tribe recently opened the Kahtnuht’ana Duhdeldiht Campus (Kenai River People’s Learning Place), a new education center in Kenai, Alaska.
| Sep 13, 2022
California building codes now allow high-rise mass-timber buildings
California recently enacted new building codes that allow for high-rise mass-timber buildings to be constructed in the state.
| Sep 13, 2022
Orange County opens civic center complex—one of California’s largest P3 projects
Orange County’s recently opened County Administration North (CAN) building caps an urban center development that constitutes one of California’s largest ever P3 projects.
Laboratories | Sep 12, 2022
Lab space scarcity propels construction demand in life sciences sector
In its 2021 Life Sciences Real Estate Outlook, JLL predicted that access to talent would be a primary concern for an industry sector that had been growing by leaps and bounds. A year later, talent still guides real estate decisions. But market conditions of a different sort were cooling the biotech field: namely, investors that have soured on startups which underperformed after going public. What this means for new construction and renovation going forward is unpredictable, as the drivers behind life sciences’ surge are still palpable.
| Sep 12, 2022
Staff at New York City architecture firm is first in U.S. to unionize
Staff at New York City architecture firm is first in U.S. to unionize.