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Chicago Leads Large Cities in Construction Cost Increases
Construction costs are rising faster in Chicago than they are in other big metropolitan areas, but slower than they were last year, Crain’s Chicago Business reported.
An index of Chicago-area construction costs increased 9.2% from April 2022 to April 2023, according to a report by Rider Levett Bucknall, a construction consulting firm. That was the biggest jump among the 12 largest urban centers covered by the report, including New York (6.3%), Los Angeles (6.5%), and Washington, D.C. (6.8%).
Total construction starts in the U.S. fell 6% in the first five months of the year compared with the same period in 2022, according to Dodge Construction Network. Though construction costs are rising at a slower rate, the costs of some materials are still increasing at double-digit rates, according to RLB. Cement prices jumped 13.7% in April from a year earlier, while gypsum prices rose 12.1%, the report says. But lumber dropped 32.1%, and steel-product prices fell 14.3%.
