U.S. Construction Costs Rise in High Single-Digits Y-O-Y
U.S. construction costs registered significant increases in the first quarter on both a quarterly and annual basis, according to Turner Construction and Rider Levett Bucknall (RLB). Turner said its First Quarter 2022 Turner Building Cost Index had increased to the value of 1255. This represents a 2.03% quarterly increase from Q4 2021 and a 7.08% year-over-year increase.
RLB measured a slightly lower quarterly increase for Q1, but an even bigger one Y-O-Y. The U.S. quarterly national average increase in construction cost is approximately 1.58%, compared to 8.04% Y-O-Y, according to RLB,
“Overall supply chain stability and the ‘return-to-normal’ state have not yet been established,” said Attilio Rivetti, the Turner VP responsible for compiling the Cost Index. “Some key materials continue to be in short supply due to supply chain disruptions in manufacturing and computer chip shortages. Higher transportation costs are due to the rising price of gasoline and diesel fuels.”
Paul Bubny serves as Senior Content Director for Connect Commercial Real Estate, a role to which he brings 13-plus years’ experience covering the commercial real estate industry and 30-plus years in business-to-business journalism. In this capacity, he oversees daily operations while also reporting on both local/regional markets and national trends, covering individual transactions across all property types, as well as delving into broader subject matter. He produces 15-20 daily news stories per day and works with the Connect team and clients to develop longer-form content, ranging from Q&As to thought-leadership pieces.
Prior to joining Connect, Paul was Managing Editor for both Real Estate Forum and GlobeSt.com at American Lawyer Media, where he oversaw operations at both publications while also producing daily news and feature-length articles. His tenure in B2B publishing stretches back into the print era, and he has served as Editor in Chief on four national trade publications.
Since 1999, Paul has volunteered as the newsletter editor of passenger rail advocacy groups (one national, one local).