International property and construction consultancy firm Rider Levett Bucknall (RLB) has released its latest Quarterly Cost Report, providing an eye-opening perspective on the North American construction industry trends in 14 key markets.

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With data current to mid-Q2 2023, the latest RLB quarterly cost report shows that the national average increase in construction costs was 1.56 percent over the previous quarter, with Chicago, Denver, Las Vegas, and San Francisco experiencing increases over the national average this quarter. Boston, Honolulu, Las Angeles, Portland, Seattle, and Washington DC experienced gains were less than the national average. 

“As we approach the halfway point of 2023, the economic uncertainty hasn’t become any clearer as the year progresses. That uncertainty looms large as economic and workforce shortages concern the construction industry,” says Julian Anderson, FRICS, President of RLB North America. “While demand for construction remains strong, possible inflation, bank failures, and recession fears still feed the uncertainty and a potential slowdown for 2024.”

Quarterly Cost Report notes

  • The U.S. quarterly national average increase in construction cost is approximately 1.56 percent, compared to 7.22 percent year-over-year 
  • The construction unemployment rate is up down slightly to 5.6 percent from 6.0 percent in the same time period last year
  • The Architectural Billings Index (ABI) is 48.5, the sixth time in the last seven months below 50.

Read the complete 2023 QCR Q2 construction trends report here.