Cautious optimism remains the buzzword to define the economic status of the construction industry following the first quarter of 2024.
The latest Rider Levett Bucknall (RLB) quarterly cost report states that construction costs were up 1.29% from Q4 2023, compared to higher rates of 1.5% or more throughout 2023. The increase mirrors that of pre-pandemic levels of 2019, and the year-over-year growth is just slightly higher than five years ago at 5.85% in Q1 2024.
Boston, Chicago, Honolulu, Los Angeles, New York, and Washington D.C. all experienced increases over the national average this quarter. Denver, Las Vegas, Phoenix, Portland, San Francisco, and Seattle experienced gains that were less than the national average.
Construction-put-in-place during January 2023 was $2,102.4 billion, 0.2% below the revised December 2023 estimate of $2,105.8 billion, and 11.7% above the January 2023 estimate of $1,888.2 billion, according to the U.S. Department of Commerce.
“Despite having reached extremely high peaks, prices for construction materials are finally on a downward trajectory,” Paul Brussow, president of RLB North America stated in his editorial note.
RLB
Brussow noted that prices are still rising as market participants attempt to reconcile the decline in private starts with longer-term requirements.
