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Forecasting Local 2023 Construction Costs
This map reflects local USA Building Project Planning Services team leaders’ opinions of market volume and capacity and is not based on published analytics or third-party forecasts.
Click the map pins to see forecast details for a specific city or region.
Miami/Ft. Lauderdale
Seattle
Portland
Orlando
Tampa
New Jersey
New York
Boston
Connecticut
Phoenix
Philadelphia
Washington D.C.
North Carolina/
Virginia
Cincinnati
Atlanta
Nashville
Houston
Dallas
San Antonio
Los Angeles
San Francisco
Boston/New England
While Engineering News-Record reports that local city cost indexes have flattened, construction subcontractor pricing on mid- to large-scale projects is not reflecting this trend. Some of the commodity pricing has flattened but pricing is still rising for equipment and most quoted materials on projects. Smaller projects are benefiting from heightened pricing competition, while larger projects are not yet seeing the same benefits. However, this could change in the future. Increased lead times are still negatively impacting nearly all projects. We are beginning to see private multi-unit development projects changing hands due to the ongoing increases in interest rates. Demand for housing is continuing to drive the local construction industry, making up for a slight slowdown in commercial construction. Many subcontractors that have good backlogs are backing away from projects instead of traditionally increasing markups. Life science and manufacturing projects are still moving forward aggressively, mitigating the decrease in new office construction starts.
Want to discuss the local market position and forecast? Connect with Matt Impastato, Vice President of Preconstruction, Boston.
Life science and lab projects balance the commercial office project slowdown
Local Construction Cost Forecast
Next 6 months
6 months - 1 year
1 - 2 years
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Market is experiencing significant construction price inflation (+5% per annum)
Market is stable and construction pricing/ inflation is less than 3% per annum
Market is recessed and construction pricing/inflation is flat or negative
Construction price inflation is expected to be above normal (3-5% per annum)
Construction price inflation is expected to be above normal (3-5% per annum)
Construction price inflation is expected to be above normal (3-5% per annum)
Construction price inflation is expected to be above normal (3-5% per annum)
Construction price inflation is expected to be above normal (3-5% per annum)
Market is experiencing significant construction price inflation (+5% per annum)
Market is experiencing significant construction price inflation (+5% per annum)
Market is stable and construction pricing/ inflation is less than 3% per annum
Market is stable and construction pricing/ inflation is less than 3% per annum
Market is recessed and construction pricing/inflation is flat or negative
Market is recessed and construction pricing/inflation is flat or negative
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Miami/
Ft. Lauderdale
Seattle
Portland
Orlando
Tampa
New Jersey
New York
Boston
Phoenix
Philadelphia
Washington D.C.
N. Carolina/ Virginia
Cincinnati
Connecticut
Atlanta
Nashville
Houston
Dallas
San Antonio
Los Angeles
San Francisco
Atlanta, GA
The rate of increase of material prices is beginning to slow somewhat. The latest challenge in the market has been mechanical and electrical equipment lead times. Possible solutions are to explore alternate equipment manufacturers and resizing equipment to more standard or readily available sizes. With several large data center projects in the market breaking ground this year, we do not see this trend slowing any time soon. Steel prices are also beginning to stabilize.
Longer mechanical and electrical equipment lead times continue
Want to discuss the local market position and forecast? Connect with Dane Wooley, Preconstruction Director in Atlanta.
Local Construction Cost Forecast
Next 6 months
6 months - 1 year
1 - 2 years
Construction price inflation is expected to be above normal (3-5% per annum)
Construction price inflation is expected to be above normal (3-5% per annum)
Market is recessed and construction pricing/inflation is flat or negative
Market is recessed and construction pricing/inflation is flat or negative
Market is recessed and construction pricing/inflation is flat or negative
Market is stable and construction pricing/ inflation is within traditional indices (less than 3% per annum)
Market is stable and construction pricing/ inflation is within traditional indices (less than 3% per annum)
Market is stable and construction pricing/ inflation is within traditional indices (less than 3% per annum)
Construction price inflation is expected to be above normal (3-5% per annum)
Construction price inflation is expected to be above normal (3-5% per annum)
Construction price inflation is expected to be above normal (3-5% per annum)
Market is experiencing significant/ abnormal construction price inflation (+5% per annum)
Market is experiencing significant/ abnormal construction price inflation (+5% per annum)
Market is experiencing significant/ abnormal construction price inflation (+5% per annum)
Back to map
Market is stable and construction pricing/ inflation is within traditional indices (less than 3% per annum)
Cincinnati, OH
We are seeing signs of construction cooling and price escalation flattening at a national level. However, it is worth noting that in our region, the number of large projects is keeping pressure on the local market. As we have seen for several months, the trend toward material price stabilization and the easing of supply chain pressures is helping to make planning more manageable. Still, we are not seeing any signs that trade labor shortages will be resolved any time soon. Major billion-dollar-plus projects in Ohio, Tennessee and Michigan will continue to draw labor resources from a large geographic area, which will continue to put pressure on local contractors to raise wages to retain their workforce. This issue will continue to drive overall cost escalation for regional construction projects. Additionally, our local market remains strong in the areas of higher education, commercial and multi-market sectors. Healthcare is predicted to see a significant drop in capital spending as healthcare providers are still recovering from lost revenue during the pandemic.
Regional Construction Market Remains Busy
Want to discuss the local market position and forecast? Connect with Jeff Smoker, Vice President of Preconstruction in Cincinnati.
Local Construction Cost Forecast
Next 6 months
6 months - 1 year
1 - 2 years
Construction price inflation is expected to be above normal (3-5% per annum)
Construction price inflation is expected to be above normal (3-5% per annum)
Market is recessed and construction pricing/inflation is flat or negative
Market is recessed and construction pricing/inflation is flat or negative
Market is recessed and construction pricing/inflation is flat or negative
Market is stable and construction pricing/ inflation is within traditional indices (less than 3% per annum)
Market is stable and construction pricing/ inflation is within traditional indices (less than 3% per annum)
Market is stable and construction pricing/ inflation is within traditional indices (less than 3% per annum)
Construction price inflation is expected to be above normal (3-5% per annum)
Construction price inflation is expected to be above normal (3-5% per annum)
Construction price inflation is expected to be above normal (3-5% per annum)
Market is experiencing significant/ abnormal construction price inflation (+5% per annum)
Market is experiencing significant/ abnormal construction price inflation (+5% per annum)
Market is experiencing significant/ abnormal construction price inflation (+5% per annum)
Back to map
Dallas, TX
Although there have been signs of the private commercial market leveling out and becoming more predictable, the Dallas-Fort Worth market remains quite busy overall. For example, the new development planned for large projects, such as the new Universal Studios Parks and Resorts and the relocation of Caterpillar global headquarters from Deerfield, Illinois, to Irving, Texas. Other markets in the region remaining robust include higher education, hospitality and healthcare.
The Dallas market remains strong and steady
Want to discuss the local market position and forecast? Connect with Linh Le, Vice President of Preconstruction in Texas.
Local Construction Cost Forecast
Next 6 months
6 months - 1 year
1 - 2 years
Construction price inflation is expected to be above normal (3-5% per annum)
Construction price inflation is expected to be above normal (3-5% per annum)
Construction price inflation is expected to be above normal (3-5% per annum)
Market is recessed and construction pricing/inflation is flat or negative
Market is recessed and construction pricing/inflation is flat or negative
Market is recessed and construction pricing/inflation is flat or negative
Market is stable and construction pricing/ inflation is within traditional indices (less than 3% per annum)
Market is stable and construction pricing/ inflation is within traditional indices (less than 3% per annum)
Market is stable and construction pricing/ inflation is within traditional indices (less than 3% per annum)
Construction price inflation is expected to be above normal (3-5% per annum)
Construction price inflation is expected to be above normal (3-5% per annum)
Construction price inflation is expected to be above normal (3-5% per annum)
Market is experiencing significant/ abnormal construction price inflation (+5% per annum)
Market is experiencing significant/ abnormal construction price inflation (+5% per annum)
Market is experiencing significant/ abnormal construction price inflation (+5% per annum)
Back to map
Washington, D.C.
Although the D.C. market is still experiencing significant challenges due to a strained supply chain and increased construction costs, several markets are moving forward. Multi-family residential projects—especially those with sustainable/green attributes—are one example. These projects thrive even as the typical single-family market has slowed due to increased interest rates. Other growing markets in our region include industrial, institutional, healthcare and education. Commercial office space as a market is still being cautiously evaluated due to the continued shift to remote work scenarios. The demand to make offices more homelike and flexible is at the forefront of design and construction considerations. The main concern for the local labor force is not quantity but quality. The good news is that we see cost escalation slowing amid ongoing financial uncertainty.
D.C. Construction Spending Should Climb in 2023 Despite Ongoing Economic Uncertainty
Want to discuss the local market position and forecast? Connect with Tom Strawbridge, Preconstruction Director in Washington, D.C.
Local Construction Cost Forecast
Next 6 months
6 months - 1 year
1 - 2 years
Construction price inflation is expected to be above normal (3-5% per annum)
Market is recessed and construction pricing/inflation is flat or negative
Market is recessed and construction pricing/inflation is flat or negative
Market is recessed and construction pricing/inflation is flat or negative
Market is stable and construction pricing/ inflation is within traditional indices (less than 3% per annum)
Market is stable and construction pricing/ inflation is within traditional indices (less than 3% per annum)
Market is stable and construction pricing/ inflation is within traditional indices (less than 3% per annum)
Construction price inflation is expected to be above normal (3-5% per annum)
Construction price inflation is expected to be above normal (3-5% per annum)
Construction price inflation is expected to be above normal (3-5% per annum)
Market is experiencing significant/ abnormal construction price inflation (+5% per annum)
Market is experiencing significant/ abnormal construction price inflation (+5% per annum)
Market is experiencing significant/ abnormal construction price inflation (+5% per annum)
Back to map
Market is stable and construction pricing/ inflation is within traditional indices (less than 3% per annum)
Market is stable and construction pricing/ inflation is within traditional indices (less than 3% per annum)
Houston, TX
Houston is home to the largest medical center in the world. Plus, with healthcare projects, such as the Harris Health LBJ Replacement Hospital ($800 million), MD Anderson AC2 and AC3 ($2.5 billion), and Houston Methodist ($2 billion), the market will continue to require a significantly sized, qualified construction workforce. Other market sectors, including commercial office space, retail development and multi-family projects, will experience a slowdown in our region during 2023. These sectors will also be limited by construction financing availability. Texas' vaunted oil and gas industry posted a prolific 2022, generating more than $320 billion and adding over 24,000 jobs. We are beginning to see this translate to the construction sector as some of the big oil and gas companies (Shell, ExxonMobile and Chevron) are starting to spend money on various new facility construction projects. So, while there continue to be indications of a slowing economy, especially among projects that require construction financing, there is optimism that the construction market in Houston is well-positioned to maintain its strength in 2023.
Market is Thriving
Want to discuss the local market position and forecast? Connect with Linh Le, Vice President of Preconstruction in Texas.
Local Construction Cost Forecast
Next 6 months
6 months - 1 year
1 - 2 years
Construction price inflation is expected to be above normal (3-5% per annum)
Construction price inflation is expected to be above normal (3-5% per annum)
Market is recessed and construction pricing/inflation is flat or negative
Market is recessed and construction pricing/inflation is flat or negative
Market is recessed and construction pricing/inflation is flat or negative
Market is stable and construction pricing/ inflation is within traditional indices (less than 3% per annum)
Market is stable and construction pricing/ inflation is within traditional indices (less than 3% per annum)
Market is stable and construction pricing/ inflation is within traditional indices (less than 3% per annum)
Construction price inflation is expected to be above normal (3-5% per annum)
Construction price inflation is expected to be above normal (3-5% per annum)
Construction price inflation is expected to be above normal (3-5% per annum)
Market is experiencing significant/ abnormal construction price inflation (+5% per annum)
Market is experiencing significant/ abnormal construction price inflation (+5% per annum)
Market is experiencing significant/ abnormal construction price inflation (+5% per annum)
Back to map
Construction price inflation is expected to be above normal (3-5% per annum)
Los Angeles, CA
As fears of a recession mount and projects get canceled or put on hold, some contractors and designers are seeing a downturn in business. While regional construction employment is at or above pre-pandemic levels—largely due to the City of Los Angeles investing heavily in transit infrastructure and large mixed-use projects—we expect this demand to be tested in 2023. This projection is primarily based on the anticipated impact of rising interest rates and concerns that the markets for certain projects may not be as robust as initially forecast. In 2023, we are also likely to experience a slowing in the pace of bid submission price escalation. Still, we do not anticipate an economic slowdown causing a broad-based deflation in construction prices.
Signs of a slowdown on the rise
Want to discuss the local market position and forecast? Connect with Darrell Torres, Senior Preconstruction Director in Los Angeles.
Local Construction Cost Forecast
Next 6 months
6 months - 1 year
1 - 2 years
Construction price inflation is expected to be above normal (3-5% per annum)
Market is recessed and construction pricing/inflation is flat or negative
Market is recessed and construction pricing/inflation is flat or negative
Market is recessed and construction pricing/inflation is flat or negative
Market is stable and construction pricing/ inflation is within traditional indices (less than 3% per annum)
Market is stable and construction pricing/ inflation is within traditional indices (less than 3% per annum)
Market is stable and construction pricing/ inflation is within traditional indices (less than 3% per annum)
Construction price inflation is expected to be above normal (3-5% per annum)
Construction price inflation is expected to be above normal (3-5% per annum)
Construction price inflation is expected to be above normal (3-5% per annum)
Market is experiencing significant/ abnormal construction price inflation (+5% per annum)
Market is experiencing significant/ abnormal construction price inflation (+5% per annum)
Market is experiencing significant/ abnormal construction price inflation (+5% per annum)
Back to map
Market is stable and construction pricing/ inflation is within traditional indices (less than 3% per annum)
Market is stable and construction pricing/ inflation is within traditional indices (less than 3% per annum)
Miami/Ft. Lauderdale
The stabilization of growth in South Florida during Q4 2022 could signal a moderation of the COVID-19-driven migration of several businesses to this region. Despite the rise in interest rates, residential home sales are still strong as the population continues to grow. Most material costs are still increasing as we head into 2023, but recession fears dominating the headlines should reduce demand across sectors, including hotels/hospitality, multi-family residential and retail. This signals that the rapid pace of material escalation we've been experiencing the past few years could finally begin receding. Lead times for some materials, such as polyiso roof insulation and steel bar joists, have normalized. Other items, including mechanical equipment and electrical gear continue to see lead times of one year or more. This should be an important consideration during project planning. Trade partners remain very selective in the work they choose to pursue. Securing skilled plumbers to perform the work is particularly challenging at this time.
Trade partners remain highly selective in the work they pursue
Want to discuss the local market position and forecast? Connect with Walt Chislak, Preconstruction Manager in South Florida.
Local Construction Cost Forecast
Next 6 months
6 months - 1 year
1 - 2 years
Construction price inflation is expected to be above normal (3-5% per annum)
Construction price inflation is expected to be above normal (3-5% per annum)
Market is recessed and construction pricing/inflation is flat or negative
Market is recessed and construction pricing/inflation is flat or negative
Market is recessed and construction pricing/inflation is flat or negative
Market is stable and construction pricing/ inflation is within traditional indices (less than 3% per annum)
Market is stable and construction pricing/ inflation is within traditional indices (less than 3% per annum)
Market is stable and construction pricing/ inflation is within traditional indices (less than 3% per annum)
Construction price inflation is expected to be above normal (3-5% per annum)
Construction price inflation is expected to be above normal (3-5% per annum)
Construction price inflation is expected to be above normal (3-5% per annum)
Market is experiencing significant/ abnormal construction price inflation (+5% per annum)
Market is experiencing significant/ abnormal construction price inflation (+5% per annum)
Market is experiencing significant/ abnormal construction price inflation (+5% per annum)
Back to map
Market is stable and construction pricing/ inflation is within traditional indices (less than 3% per annum)
Nashville, TN
As we move into 2023, the U.S. GDP has experienced consecutive quarters of little to no change, and the U.S. Consumer Price Index has begun to recede from a 20-year high reached in June of 2022. The raising of interest rates by the Federal Reserve has impacted supply and demand, which has aided in easing material pricing and slowing the pace of material escalation. The Nashville region remains very active with new commercial construction, including many mega-projects (greater than $1 billion) under construction or in the planning stages. These mega-projects consume significant amounts of local labor and are forecasted to continue over the next several years. The demands on the workforce have become the leading driver in construction cost escalation in the middle Tennessee area and surrounding regions.
Material Prices Ease While Regional Mega-Projects and Workforce Shortages Drive Costs
Want to discuss the local market position and forecast? Connect with Adam Hicks, Vice President of Preconstruction in Nashville.
Local Construction Cost Forecast
Next 6 months
6 months - 1 year
1 - 2 years
Construction price inflation is expected to be above normal (3-5% per annum)
Construction price inflation is expected to be above normal (3-5% per annum)
Construction price inflation is expected to be above normal (3-5% per annum)
Market is recessed and construction pricing/inflation is flat or negative
Market is recessed and construction pricing/inflation is flat or negative
Market is recessed and construction pricing/inflation is flat or negative
Market is stable and construction pricing/ inflation is within traditional indices (less than 3% per annum)
Market is stable and construction pricing/ inflation is within traditional indices (less than 3% per annum)
Market is stable and construction pricing/ inflation is within traditional indices (less than 3% per annum)
Construction price inflation is expected to be above normal (3-5% per annum)
Construction price inflation is expected to be above normal (3-5% per annum)
Construction price inflation is expected to be above normal (3-5% per annum)
Market is experiencing significant/ abnormal construction price inflation (+5% per annum)
Market is experiencing significant/ abnormal construction price inflation (+5% per annum)
Market is experiencing significant/ abnormal construction price inflation (+5% per annum)
Back to map
North Carolina/Virginia
Local market conditions have shown initial signs of shifting amidst interest rate increases and recession projections for 2023 and 2024. In recent months, some developer driven projects have been put on hold as demand for office space slows and bank lending tightens. However, the pipeline for public projects continues to be strong despite funding delays caused by market inflation. On the institutional front, we are observing more constraint in the release of new projects into design as many owners are focusing more on critical needs, translating into a reduction in their overall pipeline. This should take some time to manifest into actual declines in work-in-place construction revenue as projects progress through the development pipeline.
We anticipate material pricing to ease in the short term, providing a temporary respite from recent inflation. However, the pace of new projects, an established backlog and limited trade labor capacity should prevent price reductions. Taking a long-term view, we anticipate the local market will stabilize to pre-Covid-19 conditions but do not see an end to local skilled labor shortages.
Shifting market outlook amidst recessionary fears
Want to discuss the local market position and forecast? Connect with Will Senner, Vice President of Preconstruction in North Carolina and Virginia.
Local Construction Cost Forecast
Next 6 months
6 months - 1 year
1 - 2 years
Construction price inflation is expected to be above normal (3-5% per annum)
Construction price inflation is expected to be above normal (3-5% per annum)
Market is recessed and construction pricing/inflation is flat or negative
Market is recessed and construction pricing/inflation is flat or negative
Market is recessed and construction pricing/inflation is flat or negative
Market is stable and construction pricing/ inflation is within traditional indices (less than 3% per annum)
Market is stable and construction pricing/ inflation is within traditional indices (less than 3% per annum)
Market is stable and construction pricing/ inflation is within traditional indices (less than 3% per annum)
Construction price inflation is expected to be above normal (3-5% per annum)
Construction price inflation is expected to be above normal (3-5% per annum)
Construction price inflation is expected to be above normal (3-5% per annum)
Market is experiencing significant/ abnormal construction price inflation (+5% per annum)
Market is experiencing significant/ abnormal construction price inflation (+5% per annum)
Market is experiencing significant/ abnormal construction price inflation (+5% per annum)
Back to map
Market is stable and construction pricing/ inflation is within traditional indices (less than 3% per annum)
New Jersey
With lead times decreasing for most building materials, escalation rates normalizing, interest rates rising and demand across many market sectors increasing, construction in the Garden State should stay busy throughout 2023. The need for more warehouse space continues to outpace supply, and judging by recent historic levels of container volume at the Port of New York and New Jersey, trade flow is shifting from west to east coast ports. The limited availability of land for new warehouse sites near the ports leaves many future tenants targeting emerging regions, such as Somerset and Warren Counties. Others are settling for industrial, outdoor lots to store containers, equipment and vehicles. Additionally, in the New Jersey life sciences market, the demand for Class A lab space exceeds 1,000,000-SF, while there is only 400,000-SF currently available.
Warehouse space demands plus life sciences and school construction stave off recession woes
Want to discuss the local market position and forecast? Connect with Nick Culver, Vice President of Preconstruction in New Jersey.
Local Construction Cost Forecast
Next 6 months
6 months - 1 year
1 - 2 years
Construction price inflation is expected to be above normal (3-5% per annum)
Construction price inflation is expected to be above normal (3-5% per annum)
Construction price inflation is expected to be above normal (3-5% per annum)
Market is recessed and construction pricing/inflation is flat or negative
Market is recessed and construction pricing/inflation is flat or negative
Market is recessed and construction pricing/inflation is flat or negative
Market is stable and construction pricing/ inflation is within traditional indices (less than 3% per annum)
Market is stable and construction pricing/ inflation is within traditional indices (less than 3% per annum)
Market is stable and construction pricing/ inflation is within traditional indices (less than 3% per annum)
Construction price inflation is expected to be above normal (3-5% per annum)
Construction price inflation is expected to be above normal (3-5% per annum)
Construction price inflation is expected to be above normal (3-5% per annum)
Market is experiencing significant/ abnormal construction price inflation (+5% per annum)
Market is experiencing significant/ abnormal construction price inflation (+5% per annum)
Market is experiencing significant/ abnormal construction price inflation (+5% per annum)
Back to map
New York, NY
As we enter 2023, we are hearing a lot of discussion surrounding a forecasted recessionary period caused by financing challenges and a slowdown in the real estate sector. Whereas in 2021 and most of 2022 we saw above-normal escalation trends, we should see these ease in 2023. Many of the supply chain challenges are improving, particularly in critical trades, such as steel and roofing. However, large MEP equipment remains problematic as we face lead times of more than a year for key products, including air handlers and generators. High-voltage switchgear lead times hover around 1.5 years. We strongly urge early procurement strategies for these products on all projects. The healthcare sector continues to thrive in our market, with life sciences, higher education and cultural institutions also contributing to positive industry development in our region.
New York healthcare continues to be an industry bright spot
Want to discuss the local market position and forecast? Connect with John Tamborino, Vice President of Preconstruction in New York.
Local Construction Cost Forecast
Next 6 months
6 months - 1 year
1 - 2 years
Construction price inflation is expected to be above normal (3-5% per annum)
Market is recessed and construction pricing/inflation is flat or negative
Market is recessed and construction pricing/inflation is flat or negative
Market is recessed and construction pricing/inflation is flat or negative
Market is stable and construction pricing/ inflation is within traditional indices (less than 3% per annum)
Market is stable and construction pricing/ inflation is within traditional indices (less than 3% per annum)
Market is stable and construction pricing/ inflation is within traditional indices (less than 3% per annum)
Construction price inflation is expected to be above normal (3-5% per annum)
Construction price inflation is expected to be above normal (3-5% per annum)
Construction price inflation is expected to be above normal (3-5% per annum)
Market is experiencing significant/ abnormal construction price inflation (+5% per annum)
Market is experiencing significant/ abnormal construction price inflation (+5% per annum)
Market is experiencing significant/ abnormal construction price inflation (+5% per annum)
Back to map
Market is experiencing significant/ abnormal construction price inflation (+5% per annum)
Market is stable and construction pricing/ inflation is within traditional indices (less than 3% per annum)
Orlando, FL
As Central Florida trade partners consider the wide range of opportunities for them in 2023, they are realizing that the shortage of skilled craft will present a real problem. Local unemployment has dropped below three percent, and Orlando's private sector employment increased by almost 65,000 jobs in the past year. Across all trades and markets sectors, we hear the same message: "We are paying significantly more per hour and getting less production." This uncertainty has impacted the cost of performing work and slowed schedules. To combat the uncertainty and offset risk, trades are significantly increasing their margins.
Despite this, construction starts continue to be strong, and area projects under development are moving forward, with several significant new projects exceeding $1 billion in the pipeline with 2023 start dates.
Surplus of Available Jobs, Shortage of Skilled Craft and Consistent Growth Result in Continued Escalation
Want to discuss the local market position and forecast? Connect with Tom Stickrod, Vice President of Preconstruction in Orlando.
Local Construction Cost Forecast
Next 6 months
6 months - 1 year
1 - 2 years
Market is experiencing significant/ abnormal construction price inflation (+5% per annum)
Market is recessed and construction pricing/inflation is flat or negative
Market is recessed and construction pricing/inflation is flat or negative
Market is recessed and construction pricing/inflation is flat or negative
Market is stable and construction pricing/ inflation is within traditional indices (less than 3% per annum)
Market is stable and construction pricing/ inflation is within traditional indices (less than 3% per annum)
Market is stable and construction pricing/ inflation is within traditional indices (less than 3% per annum)
Construction price inflation is expected to be above normal (3-5% per annum)
Construction price inflation is expected to be above normal (3-5% per annum)
Construction price inflation is expected to be above normal (3-5% per annum)
Market is experiencing significant/ abnormal construction price inflation (+5% per annum)
Market is experiencing significant/ abnormal construction price inflation (+5% per annum)
Market is experiencing significant/ abnormal construction price inflation (+5% per annum)
Back to map
Market is experiencing significant/ abnormal construction price inflation (+5% per annum)
Construction price inflation is expected to be above normal (3-5% per annum)
Philadelphia, PA
The greater Philadelphia Metro region remains busy as we see multiple new projects in healthcare, such as the new $1.0B patient tower in University City, several hundred-million-dollar expansions in New Jersey, and a large future expansion at a healthcare system in Camden. There are also numerous science and technology buildings going up in Center City and the Philadelphia suburbs, as well as renovations underway. Furthermore, we are seeing several higher education start-up projects at Lehigh University, Penn and Drexel. A large amount of state and government agencies are releasing projects this year including a large forensic hospital planned for Norristown, and some juvenile detention facilities in multiple locations in New Jersey. The other various market sectors continue to be slower as interest rates continue to rise, and owners remain hesitant to take on new projects.
The Philadelphia Metro region continues to thrive amid new healthcare and higher education projects
Want to discuss the local market position and forecast? Connect with James Lane, Vice President of Preconstruction in Philadelphia.
Local Construction Cost Forecast
Next 6 months
6 months - 1 year
1 - 2 years
Construction price inflation is expected to be above normal (3-5% per annum)
Market is recessed and construction pricing/inflation is flat or negative
Market is recessed and construction pricing/inflation is flat or negative
Market is recessed and construction pricing/inflation is flat or negative
Market is stable and construction pricing/ inflation is within traditional indices (less than 3% per annum)
Market is stable and construction pricing/ inflation is within traditional indices (less than 3% per annum)
Market is stable and construction pricing/ inflation is within traditional indices (less than 3% per annum)
Construction price inflation is expected to be above normal (3-5% per annum)
Construction price inflation is expected to be above normal (3-5% per annum)
Construction price inflation is expected to be above normal (3-5% per annum)
Market is experiencing significant/ abnormal construction price inflation (+5% per annum)
Market is experiencing significant/ abnormal construction price inflation (+5% per annum)
Market is experiencing significant/ abnormal construction price inflation (+5% per annum)
Back to map
Market is stable and construction pricing/ inflation is within traditional indices (less than 3% per annum)
Market is stable and construction pricing/ inflation is within traditional indices (less than 3% per annum)
Market is stable and construction pricing/ inflation is within traditional indices (less than 3% per annum)
Phoenix, AZ
The Phoenix market is still going strong with the Taiwan Semiconductor plant being the major project consuming vast labor resources. We are seeing several other clients in the microelectronic industry slow or put new projects on hold. Our clients in the data center market continue to build and plan for new buildings with some caution around lead times for the procurement of electrical switchgear, generators and crac units. We are also seeing professional service staff labor loosening up and more qualified personnel are readily available for hire.
A robust market overall with some labor and material supply issues
Want to discuss the local market position and forecast? Connect with Tom Feeney, Vice President of Preconstruction in Phoenix.
Local Construction Cost Forecast
Next 6 months
6 months - 1 year
1 - 2 years
Market is recessed and construction pricing/inflation is flat or negative
Market is recessed and construction pricing/inflation is flat or negative
Market is recessed and construction pricing/inflation is flat or negative
Market is stable and construction pricing/ inflation is within traditional indices (less than 3% per annum)
Market is stable and construction pricing/ inflation is within traditional indices (less than 3% per annum)
Market is stable and construction pricing/ inflation is within traditional indices (less than 3% per annum)
Construction price inflation is expected to be above normal (3-5% per annum)
Construction price inflation is expected to be above normal (3-5% per annum)
Construction price inflation is expected to be above normal (3-5% per annum)
Market is experiencing significant/ abnormal construction price inflation (+5% per annum)
Market is experiencing significant/ abnormal construction price inflation (+5% per annum)
Market is experiencing significant/ abnormal construction price inflation (+5% per annum)
Back to map
Construction price inflation is expected to be above normal (3-5% per annum)
Market is experiencing significant/ abnormal construction price inflation (+5% per annum)
Market is experiencing significant/ abnormal construction price inflation (+5% per annum)
Portland, OR
Looming layoffs at Intel, our region's largest employer, are causing concern that the Silicon Forest’s engine may start to sputter. Funds from the CHIPS Act are having some stimulus effect, but many customers with multiple campuses are still examining potential tax breaks to decide where to deploy their money. Stable public bond work continues to move forward without risk of suspension, but new inquiries about private or developer work have slowed. General contractors and trade partners do not yet seem hungry for work, and many are using the downtime to look for quality labor to backfill what may have been hasty pandemic hires. Healthcare, K-12, mission critical, aviation and civic projects are currently leading the way, while infrastructure work may increase in the coming years.
Cloudy with a chance of slowdown
Want to discuss the local market position and forecast? Connect with Steve Clem, Senior Vice President of Preconstruction in Portland.
Local Construction Cost Forecast
Next 6 months
6 months - 1 year
1 - 2 years
Construction price inflation is expected to be above normal (3-5% per annum)
Market is stable and construction pricing/ inflation is within traditional indices (less than 3% per annum)
Market is recessed and construction pricing/inflation is flat or negative
Market is recessed and construction pricing/inflation is flat or negative
Market is recessed and construction pricing/inflation is flat or negative
Market is stable and construction pricing/ inflation is within traditional indices (less than 3% per annum)
Market is stable and construction pricing/ inflation is within traditional indices (less than 3% per annum)
Market is stable and construction pricing/ inflation is within traditional indices (less than 3% per annum)
Construction price inflation is expected to be above normal (3-5% per annum)
Construction price inflation is expected to be above normal (3-5% per annum)
Construction price inflation is expected to be above normal (3-5% per annum)
Market is experiencing significant/ abnormal construction price inflation (+5% per annum)
Market is experiencing significant/ abnormal construction price inflation (+5% per annum)
Market is experiencing significant/ abnormal construction price inflation (+5% per annum)
Back to map
Market is stable and construction pricing/ inflation is within traditional indices (less than 3% per annum)
San Antonio, TX
There continues to be clear economic indicators of an upcoming recessionary period. Still, recent project procurement and pricing have not yet yielded cost reductions, nor have we seen a decrease in new opportunities. Since construction financing is becoming increasingly more difficult and expensive to secure, we anticipate a potential slowdown with projects that are not yet fully funded. However, San Antonio has a diverse project portfolio and backlog of institutional, K-12 and public projects, including a planned $2.5 billion airport master plan—most of which already have funding and are not dependent on further construction financing.
Skilled workforce shortages generally continue across the board, and San Antonio is impacted by the demands placed on labor by ongoing mega-projects in the greater Austin area.
Recession who?
Want to discuss the local market position and forecast? Connect with Chris Hillyer, Senior Vice President of Preconstruction in San Antonio.
Local Construction Cost Forecast
Next 6 months
6 months - 1 year
1 - 2 years
Construction price inflation is expected to be above normal (3-5% per annum)
Construction price inflation is expected to be above normal (3-5% per annum)
Construction price inflation is expected to be above normal (3-5% per annum)
Market is recessed and construction pricing/inflation is flat or negative
Market is recessed and construction pricing/inflation is flat or negative
Market is recessed and construction pricing/inflation is flat or negative
Market is stable and construction pricing/ inflation is within traditional indices (less than 3% per annum)
Market is stable and construction pricing/ inflation is within traditional indices (less than 3% per annum)
Market is stable and construction pricing/ inflation is within traditional indices (less than 3% per annum)
Construction price inflation is expected to be above normal (3-5% per annum)
Construction price inflation is expected to be above normal (3-5% per annum)
Construction price inflation is expected to be above normal (3-5% per annum)
Market is experiencing significant/ abnormal construction price inflation (+5% per annum)
Market is experiencing significant/ abnormal construction price inflation (+5% per annum)
Market is experiencing significant/ abnormal construction price inflation (+5% per annum)
Back to map
San Francisco, CA
We see changes for the market in 2023 as interest rate hikes and stock market performance continue to cool the economy. National commercial lenders are concerned about market performance in the San Francisco Bay Area where tech giants, such as Google, Facebook and others have halted major capital investment in construction. In fact, these lenders have zeroed in on the Bay Area as their number one area of concern out of the ten top metro regions in the U.S. Despite the slowdown, we see several opportunities, including in the conversion of vacant office space to life science facilities. Biotech research and development buildings and data centers appear to be the leading markets, with several projects in the pipeline. Healthcare is another growth area. We expect escalation for 2023 to stabilize at approximately three to four percent.
Economic cool-down in San Francisco both a local and national concern
Want to discuss the local market position and forecast? Connect with Yvan Suarez, Senior Preconstruction Director in North California.
Local Construction Cost Forecast
Next 6 months
6 months - 1 year
1 - 2 years
Construction price inflation is expected to be above normal (3-5% per annum)
Market is recessed and construction pricing/inflation is flat or negative
Market is recessed and construction pricing/inflation is flat or negative
Market is recessed and construction pricing/inflation is flat or negative
Market is stable and construction pricing/ inflation is within traditional indices (less than 3% per annum)
Market is stable and construction pricing/ inflation is within traditional indices (less than 3% per annum)
Market is stable and construction pricing/ inflation is within traditional indices (less than 3% per annum)
Construction price inflation is expected to be above normal (3-5% per annum)
Construction price inflation is expected to be above normal (3-5% per annum)
Construction price inflation is expected to be above normal (3-5% per annum)
Market is experiencing significant/ abnormal construction price inflation (+5% per annum)
Market is experiencing significant/ abnormal construction price inflation (+5% per annum)
Market is experiencing significant/ abnormal construction price inflation (+5% per annum)
Back to map
Market is stable and construction pricing/ inflation is within traditional indices (less than 3% per annum)
Market is stable and construction pricing/ inflation is within traditional indices (less than 3% per annum)
Seattle, WA
In 2023, there is evidence that the Seattle market is in a transitory phase:
• Several large, local projects have been put on hold by Microsoft, Amazon, Meta, Kaiser Permanente and others
• Competition for work is pressuring contractors to reduce their fees
• Generally, commodity prices are declining, while labor and major equipment costs are on the rise
• Local labor unions continue to advocate for additional wage raises to keep pace with inflation
While we expect these counterweighing pressures to weaken escalation over the next two years—holding it to a low around two percent—the market should bounce back as companies and developers resume projects. At that point, we anticipate regional escalation to be in the 4.5 percent range.
The Seattle market is in transition
Want to discuss the local market position and forecast? Connect with Alan Dunbar, Senior Vice President of Preconstruction in Seattle.
Local Construction Cost Forecast
Next 6 months
6 months - 1 year
1 - 2 years
Construction price inflation is expected to be above normal (3-5% per annum)
Market is stable and construction pricing/ inflation is within traditional indices (less than 3% per annum)
Market is stable and construction pricing/ inflation is within traditional indices (less than 3% per annum)
Market is recessed and construction pricing/inflation is flat or negative
Market is recessed and construction pricing/inflation is flat or negative
Market is recessed and construction pricing/inflation is flat or negative
Market is stable and construction pricing/ inflation is within traditional indices (less than 3% per annum)
Market is stable and construction pricing/ inflation is within traditional indices (less than 3% per annum)
Market is stable and construction pricing/ inflation is within traditional indices (less than 3% per annum)
Construction price inflation is expected to be above normal (3-5% per annum)
Construction price inflation is expected to be above normal (3-5% per annum)
Construction price inflation is expected to be above normal (3-5% per annum)
Market is experiencing significant/ abnormal construction price inflation (+5% per annum)
Market is experiencing significant/ abnormal construction price inflation (+5% per annum)
Market is experiencing significant/ abnormal construction price inflation (+5% per annum)
Back to map
Tampa, FL
Even though rising interest rates have begun to slow the new housing market in the Tampa Metro area, it remains one of the hottest in the country. Our dynamic market continues to strain the supply of skilled workers in all sectors. With additional construction projects in office space, higher education and healthcare coming into the market, we anticipate further shortages of many construction materials. Though the supply chain is stretched, experienced teams can employ early detection, alternate materials and early release packages to help mitigate some of the challenges.
Our housing market remains strong, straining labor and material availability
Want to discuss the local market position and forecast? Connect with Jeff Courtney, Preconstruction Manager in Tampa.
Local Construction Cost Forecast
Next 6 months
6 months - 1 year
1 - 2 years
Construction price inflation is expected to be above normal (3-5% per annum)
Construction price inflation is expected to be above normal (3-5% per annum)
Market is stable and construction pricing/ inflation is within traditional indices (less than 3% per annum)
Market is recessed and construction pricing/inflation is flat or negative
Market is recessed and construction pricing/inflation is flat or negative
Market is recessed and construction pricing/inflation is flat or negative
Market is stable and construction pricing/ inflation is within traditional indices (less than 3% per annum)
Market is stable and construction pricing/ inflation is within traditional indices (less than 3% per annum)
Market is stable and construction pricing/ inflation is within traditional indices (less than 3% per annum)
Construction price inflation is expected to be above normal (3-5% per annum)
Construction price inflation is expected to be above normal (3-5% per annum)
Construction price inflation is expected to be above normal (3-5% per annum)
Market is experiencing significant/ abnormal construction price inflation (+5% per annum)
Market is experiencing significant/ abnormal construction price inflation (+5% per annum)
Market is experiencing significant/ abnormal construction price inflation (+5% per annum)
Back to map
Connecticut
According to the Connecticut State Department of Labor, 2022 saw less than one percent construction growth, indicating the construction market has leveled off and competition is tight for projects. Generally, subcontractors are still protecting their margins, so pricing has not yet started to drop. Roofing pricing is an outlier as it has dropped mostly due to material availability improvements. Long lead times are still hampering productivity and causing pressure on pricing for some quoted materials. We anticipate a return to normal escalation over the next few months to a year, with slight potential to be a little lower than normal. We have started to see an increase in public and private education projects and competition for these projects will remain tight. Additional market sectors that have healthy pipelines are healthcare and multi-family wood-framed residential. Private money has started to slow down due to rising interest rates and market uncertainty.
Market cooldown continues
Want to discuss the local market position and forecast? Connect with Matt Impastato, Vice President of Preconstruction, Boston.
Local Construction Cost Forecast
Next 6 months
6 months - 1 year
1 - 2 years
Construction price inflation is expected to be above normal (3-5% per annum)
Market is recessed and construction pricing/inflation is flat or negative
Market is recessed and construction pricing/inflation is flat or negative
Market is recessed and construction pricing/inflation is flat or negative
Market is stable and construction pricing/ inflation is within traditional indices (less than 3% per annum)
Market is stable and construction pricing/ inflation is within traditional indices (less than 3% per annum)
Market is stable and construction pricing/ inflation is within traditional indices (less than 3% per annum)
Construction price inflation is expected to be above normal (3-5% per annum)
Construction price inflation is expected to be above normal (3-5% per annum)
Construction price inflation is expected to be above normal (3-5% per annum)
Market is experiencing significant/ abnormal construction price inflation (+5% per annum)
Market is experiencing significant/ abnormal construction price inflation (+5% per annum)
Market is experiencing significant/ abnormal construction price inflation (+5% per annum)
Back to map
Market is stable and construction pricing/ inflation is within traditional indices (less than 3% per annum)
Market is stable and construction pricing/ inflation is within traditional indices (less than 3% per annum)
Market is stable and construction pricing/ inflation is within traditional indices (less than 3% per annum)
Market is recessed and construction pricing/inflation is flat or negative
Market is recessed and construction pricing/inflation is flat or negative
Market is recessed and construction pricing/inflation is flat or negative
Market is stable and construction pricing/ inflation is less than 3% per annum
Market is stable and construction pricing/ inflation is less than 3% per annum
Market is stable and construction pricing/ inflation is less than 3% per annum
Construction price inflation is expected to be above normal (3-5% per annum)
Construction price inflation is expected to be above normal (3-5% per annum)
Construction price inflation is expected to be above normal (3-5% per annum)
Market is experiencing significant construction price inflation (+5% per annum)
Market is experiencing significant construction price inflation (+5% per annum)
Market is experiencing significant construction price inflation (+5% per annum)
Market is recessed and construction pricing/inflation is flat or negative
Market is recessed and construction pricing/inflation is flat or negative
Market is recessed and construction pricing/inflation is flat or negative
Market is stable and construction pricing/ inflation is less than 3% per annum
Market is stable and construction pricing/ inflation is less than 3% per annum
Market is stable and construction pricing/ inflation is less than 3% per annum
Construction price inflation is expected to be above normal (3-5% per annum)
Construction price inflation is expected to be above normal (3-5% per annum)
Construction price inflation is expected to be above normal (3-5% per annum)
Market is experiencing significant construction price inflation (+5% per annum)
Market is experiencing significant construction price inflation (+5% per annum)
Market is experiencing significant construction price inflation (+5% per annum)
Market is recessed and construction pricing/inflation is flat or negative
Market is recessed and construction pricing/inflation is flat or negative
Market is recessed and construction pricing/inflation is flat or negative
Market is stable and construction pricing/ inflation is less than 3% per annum
Market is stable and construction pricing/ inflation is less than 3% per annum
Market is stable and construction pricing/ inflation is less than 3% per annum
Construction price inflation is expected to be above normal (3-5% per annum)
Construction price inflation is expected to be above normal (3-5% per annum)
Construction price inflation is expected to be above normal (3-5% per annum)
Market is experiencing significant construction price inflation (+5% per annum)
Market is experiencing significant construction price inflation (+5% per annum)
Market is experiencing significant construction price inflation (+5% per annum)
Market is recessed and construction pricing/inflation is flat or negative
Market is recessed and construction pricing/inflation is flat or negative
Market is recessed and construction pricing/inflation is flat or negative
Market is stable and construction pricing/ inflation is less than 3% per annum
Market is stable and construction pricing/ inflation is less than 3% per annum
Market is stable and construction pricing/ inflation is less than 3% per annum
Construction price inflation is expected to be above normal (3-5% per annum)
Construction price inflation is expected to be above normal (3-5% per annum)
Construction price inflation is expected to be above normal (3-5% per annum)
Market is experiencing significant construction price inflation (+5% per annum)
Market is experiencing significant construction price inflation (+5% per annum)
Market is experiencing significant construction price inflation (+5% per annum)
Market is recessed and construction pricing/inflation is flat or negative
Market is recessed and construction pricing/inflation is flat or negative
Market is recessed and construction pricing/inflation is flat or negative
Market is stable and construction pricing/ inflation is less than 3% per annum
Market is stable and construction pricing/ inflation is less than 3% per annum
Market is stable and construction pricing/ inflation is less than 3% per annum
Construction price inflation is expected to be above normal (3-5% per annum)
Construction price inflation is expected to be above normal (3-5% per annum)
Construction price inflation is expected to be above normal (3-5% per annum)
Market is experiencing significant construction price inflation (+5% per annum)
Market is experiencing significant construction price inflation (+5% per annum)
Market is experiencing significant construction price inflation (+5% per annum)
Market is recessed and construction pricing/inflation is flat or negative
Market is recessed and construction pricing/inflation is flat or negative
Market is recessed and construction pricing/inflation is flat or negative
Market is stable and construction pricing/ inflation is less than 3% per annum
Market is stable and construction pricing/ inflation is less than 3% per annum
Market is stable and construction pricing/ inflation is less than 3% per annum
Construction price inflation is expected to be above normal (3-5% per annum)
Construction price inflation is expected to be above normal (3-5% per annum)
Construction price inflation is expected to be above normal (3-5% per annum)
Market is experiencing significant construction price inflation (+5% per annum)
Market is experiencing significant construction price inflation (+5% per annum)
Market is experiencing significant construction price inflation (+5% per annum)
Market is recessed and construction pricing/inflation is flat or negative
Market is recessed and construction pricing/inflation is flat or negative
Market is recessed and construction pricing/inflation is flat or negative
Market is stable and construction pricing/ inflation is less than 3% per annum
Market is stable and construction pricing/ inflation is less than 3% per annum
Market is stable and construction pricing/ inflation is less than 3% per annum
Construction price inflation is expected to be above normal (3-5% per annum)
Construction price inflation is expected to be above normal (3-5% per annum)
Construction price inflation is expected to be above normal (3-5% per annum)
Market is experiencing significant construction price inflation (+5% per annum)
Market is experiencing significant construction price inflation (+5% per annum)
Market is experiencing significant construction price inflation (+5% per annum)
Market is recessed and construction pricing/inflation is flat or negative
Market is recessed and construction pricing/inflation is flat or negative
Market is recessed and construction pricing/inflation is flat or negative
Market is stable and construction pricing/ inflation is less than 3% per annum
Market is stable and construction pricing/ inflation is less than 3% per annum
Market is stable and construction pricing/ inflation is less than 3% per annum
Construction price inflation is expected to be above normal (3-5% per annum)
Construction price inflation is expected to be above normal (3-5% per annum)
Construction price inflation is expected to be above normal (3-5% per annum)
Market is experiencing significant construction price inflation (+5% per annum)
Market is experiencing significant construction price inflation (+5% per annum)
Market is experiencing significant construction price inflation (+5% per annum)
Market is recessed and construction pricing/inflation is flat or negative
Market is recessed and construction pricing/inflation is flat or negative
Market is recessed and construction pricing/inflation is flat or negative
Market is stable and construction pricing/ inflation is less than 3% per annum
Market is stable and construction pricing/ inflation is less than 3% per annum
Market is stable and construction pricing/ inflation is less than 3% per annum
Construction price inflation is expected to be above normal (3-5% per annum)
Construction price inflation is expected to be above normal (3-5% per annum)
Construction price inflation is expected to be above normal (3-5% per annum)
Market is experiencing significant construction price inflation (+5% per annum)
Market is experiencing significant construction price inflation (+5% per annum)
Market is experiencing significant construction price inflation (+5% per annum)
Market is recessed and construction pricing/inflation is flat or negative
Market is recessed and construction pricing/inflation is flat or negative
Market is recessed and construction pricing/inflation is flat or negative
Market is stable and construction pricing/ inflation is less than 3% per annum
Market is stable and construction pricing/ inflation is less than 3% per annum
Market is stable and construction pricing/ inflation is less than 3% per annum
Construction price inflation is expected to be above normal (3-5% per annum)
Construction price inflation is expected to be above normal (3-5% per annum)
Construction price inflation is expected to be above normal (3-5% per annum)
Market is experiencing significant construction price inflation (+5% per annum)
Market is experiencing significant construction price inflation (+5% per annum)
Market is experiencing significant construction price inflation (+5% per annum)
Market is recessed and construction pricing/inflation is flat or negative
Market is recessed and construction pricing/inflation is flat or negative
Market is recessed and construction pricing/inflation is flat or negative
Market is stable and construction pricing/ inflation is less than 3% per annum
Market is stable and construction pricing/ inflation is less than 3% per annum
Market is stable and construction pricing/ inflation is less than 3% per annum
Construction price inflation is expected to be above normal (3-5% per annum)
Construction price inflation is expected to be above normal (3-5% per annum)
Construction price inflation is expected to be above normal (3-5% per annum)
Market is experiencing significant construction price inflation (+5% per annum)
Market is experiencing significant construction price inflation (+5% per annum)
Market is experiencing significant construction price inflation (+5% per annum)
Market is recessed and construction pricing/inflation is flat or negative
Market is recessed and construction pricing/inflation is flat or negative
Market is recessed and construction pricing/inflation is flat or negative
Market is stable and construction pricing/ inflation is less than 3% per annum
Market is stable and construction pricing/ inflation is less than 3% per annum
Market is stable and construction pricing/ inflation is less than 3% per annum
Construction price inflation is expected to be above normal (3-5% per annum)
Construction price inflation is expected to be above normal (3-5% per annum)
Construction price inflation is expected to be above normal (3-5% per annum)
Market is experiencing significant construction price inflation (+5% per annum)
Market is experiencing significant construction price inflation (+5% per annum)
Market is experiencing significant construction price inflation (+5% per annum)
Market is recessed and construction pricing/inflation is flat or negative
Market is recessed and construction pricing/inflation is flat or negative
Market is recessed and construction pricing/inflation is flat or negative
Market is stable and construction pricing/ inflation is less than 3% per annum
Market is stable and construction pricing/ inflation is less than 3% per annum
Market is stable and construction pricing/ inflation is less than 3% per annum
Construction price inflation is expected to be above normal (3-5% per annum)
Construction price inflation is expected to be above normal (3-5% per annum)
Construction price inflation is expected to be above normal (3-5% per annum)
Market is experiencing significant construction price inflation (+5% per annum)
Market is experiencing significant construction price inflation (+5% per annum)
Market is experiencing significant construction price inflation (+5% per annum)
Market is recessed and construction pricing/inflation is flat or negative
Market is recessed and construction pricing/inflation is flat or negative
Market is recessed and construction pricing/inflation is flat or negative
Market is stable and construction pricing/ inflation is less than 3% per annum
Market is stable and construction pricing/ inflation is less than 3% per annum
Market is stable and construction pricing/ inflation is less than 3% per annum
Construction price inflation is expected to be above normal (3-5% per annum)
Construction price inflation is expected to be above normal (3-5% per annum)
Construction price inflation is expected to be above normal (3-5% per annum)
Market is experiencing significant construction price inflation (+5% per annum)
Market is experiencing significant construction price inflation (+5% per annum)
Market is experiencing significant construction price inflation (+5% per annum)
Market is recessed and construction pricing/inflation is flat or negative
Market is recessed and construction pricing/inflation is flat or negative
Market is recessed and construction pricing/inflation is flat or negative
Market is stable and construction pricing/ inflation is less than 3% per annum
Market is stable and construction pricing/ inflation is less than 3% per annum
Market is stable and construction pricing/ inflation is less than 3% per annum
Construction price inflation is expected to be above normal (3-5% per annum)
Construction price inflation is expected to be above normal (3-5% per annum)
Construction price inflation is expected to be above normal (3-5% per annum)
Market is experiencing significant construction price inflation (+5% per annum)
Market is experiencing significant construction price inflation (+5% per annum)
Market is experiencing significant construction price inflation (+5% per annum)
Market is recessed and construction pricing/inflation is flat or negative
Market is recessed and construction pricing/inflation is flat or negative
Market is recessed and construction pricing/inflation is flat or negative
Market is stable and construction pricing/ inflation is less than 3% per annum
Market is stable and construction pricing/ inflation is less than 3% per annum
Market is stable and construction pricing/ inflation is less than 3% per annum
Construction price inflation is expected to be above normal (3-5% per annum)
Construction price inflation is expected to be above normal (3-5% per annum)
Construction price inflation is expected to be above normal (3-5% per annum)
Market is experiencing significant construction price inflation (+5% per annum)
Market is experiencing significant construction price inflation (+5% per annum)
Market is experiencing significant construction price inflation (+5% per annum)
Market is recessed and construction pricing/inflation is flat or negative
Market is recessed and construction pricing/inflation is flat or negative
Market is recessed and construction pricing/inflation is flat or negative
Market is stable and construction pricing/ inflation is less than 3% per annum
Market is stable and construction pricing/ inflation is less than 3% per annum
Market is stable and construction pricing/ inflation is less than 3% per annum
Construction price inflation is expected to be above normal (3-5% per annum)
Construction price inflation is expected to be above normal (3-5% per annum)
Construction price inflation is expected to be above normal (3-5% per annum)
Market is experiencing significant construction price inflation (+5% per annum)
Market is experiencing significant construction price inflation (+5% per annum)
Market is experiencing significant construction price inflation (+5% per annum)
Market is recessed and construction pricing/inflation is flat or negative
Market is recessed and construction pricing/inflation is flat or negative
Market is recessed and construction pricing/inflation is flat or negative
Market is stable and construction pricing/ inflation is less than 3% per annum
Market is stable and construction pricing/ inflation is less than 3% per annum
Market is stable and construction pricing/ inflation is less than 3% per annum
Construction price inflation is expected to be above normal (3-5% per annum)
Construction price inflation is expected to be above normal (3-5% per annum)
Construction price inflation is expected to be above normal (3-5% per annum)
Market is experiencing significant construction price inflation (+5% per annum)
Market is experiencing significant construction price inflation (+5% per annum)
Market is experiencing significant construction price inflation (+5% per annum)
Market is recessed and construction pricing/inflation is flat or negative
Market is recessed and construction pricing/inflation is flat or negative
Market is recessed and construction pricing/inflation is flat or negative
Market is stable and construction pricing/ inflation is less than 3% per annum
Market is stable and construction pricing/ inflation is less than 3% per annum
Market is stable and construction pricing/ inflation is less than 3% per annum
Construction price inflation is expected to be above normal (3-5% per annum)
Construction price inflation is expected to be above normal (3-5% per annum)
Construction price inflation is expected to be above normal (3-5% per annum)
Market is experiencing significant construction price inflation (+5% per annum)
Market is experiencing significant construction price inflation (+5% per annum)
Market is experiencing significant construction price inflation (+5% per annum)
Market is recessed and construction pricing/inflation is flat or negative
Market is recessed and construction pricing/inflation is flat or negative
Market is recessed and construction pricing/inflation is flat or negative
Market is stable and construction pricing/ inflation is less than 3% per annum
Market is stable and construction pricing/ inflation is less than 3% per annum
Market is stable and construction pricing/ inflation is less than 3% per annum
Construction price inflation is expected to be above normal (3-5% per annum)
Construction price inflation is expected to be above normal (3-5% per annum)
Construction price inflation is expected to be above normal (3-5% per annum)
Market is experiencing significant construction price inflation (+5% per annum)
Market is experiencing significant construction price inflation (+5% per annum)
Market is experiencing significant construction price inflation (+5% per annum)
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Market is recessed and construction pricing/inflation is flat or negative
Market is recessed and construction pricing/inflation is flat or negative
Market is recessed and construction pricing/inflation is flat or negative
Market is stable and construction pricing/ inflation is less than 3% per annum
Market is stable and construction pricing/ inflation is less than 3% per annum
Market is stable and construction pricing/ inflation is less than 3% per annum
Construction price inflation is expected to be above normal (3-5% per annum)
Construction price inflation is expected to be above normal (3-5% per annum)
Construction price inflation is expected to be above normal (3-5% per annum)
Market is experiencing significant construction price inflation (+5% per annum)
Market is experiencing significant construction price inflation (+5% per annum)
Market is experiencing significant construction price inflation (+5% per annum)
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Construction Market Trends
Stay prepared to respond to changes....Construction escalation forecast report and analysis for key U.S. locations and materials developed by Skanska USA Building's Project Planning Group.
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Meet the team
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Title
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Hover over meet the team members
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Section 01
Section 02
Section 03
Section 04
Section 05
At Skanska, we build for a better society. From hospitals to stadiums, airports to corporate headquarters, and power plants to tunnels and bridges, the important buildings and infrastructure we create help heal, transport, entertain and energize communities.
Skanska USA
Empire State Building
350 Fifth Avenue
32nd Floor
New York, NY 10118
Telephone: +1 917 438 4500
Contact Us
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1887
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1927
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1997
2007
2017
2027
1897
1907
1917
1927
1937
1947
1957
1967
1977
1987
1997
2007
2017
2027
1887
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Winter 2022 Construction Pricing Snapshot
Next: Local Forecasts Map
Materials and Commodities
Industry Indices
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13,173
Current construction Cost Index
7,958
Building Cost Index
+0.5%
Change from previous quarter
+0.8%
Change from previous quarter
+5.7%
12-month change
12-month
change
+10.3%
Past one-year trend
Past one-year trend
Construction Cost Index
Source: Engineering News-Record
5,888
Current material price index
+0.9%
Change from previous quarter
+19.4%
12-month change
Past one-year trend
Materials Index
Source: Engineering News-Record
Construction Cost Index
Spending
Building Cost Index
Materials Index
Labor
Architecture
Employment
Click an index or material to view details
Building Cost Index
Source: Engineering News-Record
Source: U.S. Bureau of Labor Statistics
Hover over the chart to see exact figures
Construction employment increased by 19,000 in September 2022, in line with average monthly job growth for the first eight months of the year. Construction unemployment dropped to 3.4 percent, below the national rate of 3.5 percent for all industries. Average hourly earnings have increased to $35.04 as of September, up from $34.67 in June.
U.S. Construction Employment
Source: U.S. Census Bureau and Dodge Data & Analytics
While construction starts decreased 19 percent in September, year-to-date construction was 16 percent higher in the first nine months of 2022 compared to the same period in 2021. Non-residential building starts rose 37 percent over the year but are down 23 percent from August to September.
Construction Starts and Dodge Momentum Index
Source: Engineering News-Record
Hover over the chart to see exact figures
Skilled Labor Index and Common Labor Index
For the five-year period of 2016 to 2021, the Skilled Labor index saw annualized growth of 2.1 percent. Since September of 2021, that has spiked to a present annual increase of 3.8 percent. While attempts to slow inflation continue, many market sectors continue to bring large projects to market, increasing demand for an already strained labor pool, driving up wages and increasing competition for skilled labor.
Skilled Labor and Common Labor Indices
Source: AIA
This Architecture Billings Index (ABI) demonstrates whether or not architectural firms are billing for or signing new design contracts. The construction industry feels the impact of this index with a 9-to-12-month lag time.
In September, the Architecture Billings index (ABI) reported a score of 51.7, a slight dip from 53.3 in August. The strongest conditions were reported by firms in the Northeast and Midwest, but multi-family residential and commercial/industrial sectors across the country saw their billings decline in September.
September ABI Report
Architecture Billings Index
Oil, Gas and Fuel
Structural Steel
Concrete and Cement
Drywall, Gypsum and Insulation
Asphalt
Lumber and Wood
Piping
Metals
$79.49
Current oil price
($/barrel)
-24.8%
Change from previous quarter
Oil, Gas and Fuel
Source: Engineering News-Record
$3.70
Current fuel price
($/gal)
-6.9%
Change from previous quarter
$3.70
Current gas price
($/gal)
-6.9%
Change from previous quarter
$79.49
Current oil price
($/barrel)
-24.8%
Change from previous quarter
$3.70
Current fuel price
($/gal)
-6.9%
Change from previous quarter
$3.70
Current fuel price
($/gal)
-6.9%
Change from previous quarter
Source: Engineering News-Record
Drywall, Gypsum and Insulation
Drywall
Gypsum
Insulation
Source: Engineering News-Record
Structural Steel
Source: Engineering News-Record
Asphalt
Global energy costs are expected to remain elevated in 2023 likely trending up despite recession concerns largely due to continued Russian sanctions and their retaliation to those sanctions.
Hover for current price and percent change
Hover for current price and percent change
$79.49
Current a price
($/barrel)
-24.8%
Change from previous quarter
$3.70
Current fuel price
($/gal)
-6.9%
Change from previous quarter
Asphalt pricing will follow energy costs and construction demand. We generally expect stability in 2023
Hover for current price and percent change
$79.49
Current oil price
($/barrel)
-24.8%
Change from previous quarter
$3.70
Current fuel price
($/gal)
-6.9%
Change from previous quarter
$3.70
Current gas price
($/gal)
-6.9%
Change from previous quarter
Steel something something Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat. Duis aute irure dolor in reprehenderit in voluptate velit esse cillum dolore eu fugiat nulla pariatur. Excepteur sint occaecat cupidatat non proident, sunt in culpa qui officia deserunt mollit anim id est laborum.
Hover for current price and percent change
Source: Engineering News-Record
Concrete and Cement
$79.49
Current oil price
($/barrel)
-24.8%
Change from previous quarter
$3.70
Current fuel price
($/gal)
-6.9%
Change from previous quarter
$3.70
Current gas price
($/gal)
-6.9%
Change from previous quarter
Concrete Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat. Duis aute irure dolor in reprehenderit in voluptate velit esse cillum dolore eu fugiat nulla pariatur. Excepteur sint occaecat cupidatat non proident, sunt in culpa qui officia deserunt mollit anim id est laborum.
Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat. Duis aute irure dolor in reprehenderit in voluptate velit esse cillum dolore eu fugiat nulla pariatur. Excepteur sint occaecat cupidatat non proident, sunt in culpa qui officia deserunt mollit anim id est laborum.
Hover for current price and percent change
Source: Engineering News-Record
$79.49
Current oil price
($/barrel)
-24.8%
Change from previous quarter
$3.70
Current fuel price
($/gal)
-6.9%
Change from previous quarter
$3.70
Current gas price
($/gal)
-6.9%
Change from previous quarter
Piping
Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat. Duis aute irure dolor in reprehenderit in voluptate velit esse cillum dolore eu fugiat nulla pariatur. Excepteur sint occaecat cupidatat non proident, sunt in culpa qui officia deserunt mollit anim id est laborum.
Hover for current price and percent change
Source: Engineering News-Record
$79.49
Current oil price
($/barrel)
-24.8%
Change from previous quarter
$3.70
Current fuel price
($/gal)
-6.9%
Change from previous quarter
$3.70
Current gas price
($/gal)
-6.9%
Change from previous quarter
Lumber and Wood
Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat. Duis aute irure dolor in reprehenderit in voluptate velit esse cillum dolore eu fugiat nulla pariatur. Excepteur sint occaecat cupidatat non proident, sunt in culpa qui officia deserunt mollit anim id est laborum.
Hover for current price and percent change
Source: Engineering News-Record
$79.49
Current oil price
($/barrel)
-24.8%
Change from previous quarter
$3.70
Current fuel price
($/gal)
-6.9%
Change from previous quarter
$3.70
Current gas price
($/gal)
-6.9%
Change from previous quarter
Metals
Scoring
-50: decrease in volume
=50: neutral
50+: increase in volume
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