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California Cities Among Construction Costs Leaders
Two California cities, San Francisco and Los Angeles, were ranked among the markets with high construction costs, though one was escalating while the other registered below-average increases. The latest Quarterly Cost Report by Rider Levett Bucknall shows the U.S. national average increase in construction costs was roughly 5.73% last year.
The markets that showed the greatest annual cost escalations included Chicago (7.61%), Portland (7.13%), San Francisco (6.73%), Phoenix (6.70%), Washington D.C. (6.51%), and Seattle (6.48%).
The markets that experienced below-average annual cost increases included Las Vegas (5.41%), Honolulu (4.86%), New York (4.54%), Boston (4.42%), Los Angeles (4.40%), and Denver (4.02%).
Rider Levett Bucknall’s Julian Anderson says, “According to our report, there are many markets currently at or near the top of the construction-activity cycle. Denver, Portland, Phoenix, Toronto, and Seattle are peaking, with Los Angeles, New York, Boston, San Francisco, and Las Vegas at the threshold of that zone.”
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