The latest RLB report reveals a 1.11% increase in national construction costs in the U.S. for mid-Q4 2024, driven by higher energy prices. While some materials like copper have seen significant price growth, overall costs remain lower than a year ago. The report also highlights regional variations, with some cities experiencing increases exceeding the national average.
With data from mid-Q4 2024, the latest RLB report shows the national average increase in construction costs for the U.S. was 1.11 percent, according to a release. This is similar to the previous two quarters, with Boston, Chicago, Honolulu, Las Vegas, Phoenix, Seattle, and Washington DC experiencing increases over the national average this quarter. Denver, Los Angeles, New York, Portland, and San Francisco experienced gains that were less than the national average.
\The report shows structural block increased 5.2 percent; gypsum building materials 4.8 percent; cement 4.7 percent; lumber 4.6 percent; and ready-mix concrete 3.7 percent. Copper was among the highest price growth at 14.4 percent but prices for steel products decreased by 6.9 percent. \“According to the Associated Builders and Contractors, higher energy prices have contributed to rising construction materials costs,” the report notes. “While some materials, like concrete and copper, have increased in price, overall prices are lower than a year ago and have dropped five percent since reaching an all-time high in June 2022. As we approach 2025, uncertainty about the next administration’s trade policy could impact materials costs, with potential tariffs possibly leading to short-term price increases if buyers rush to import before new policies are enacted.” \The construction unemployment rate is 3.7 percent, down 0.1 percent in the same time period last year.“Alberta’s economy is set to grow, driven by population increases and the Bank of Canada’s easing monetary policy,” it states. “Improved borrowing costs, higher consumer spending, and firm employment growth support this trend.” Housing construction surged to 50,000 units annually, and Calgary saw a 31.9 percent increase in building permits, totalling $798.4 million. The province has also advanced, to some extent, major projects like the $6.2 billion Green Line LRT. In Ontario, building permits rose to $5.9 billion at the end of Q3 2024, fuelled by large multi-unit residential projects in the Greater Toronto Area, the report notes. Bank of Canada rate cuts have boosted Toronto’s real estate market, with residential sales up 44.4 percent year-over-year in Q4 2024. Provincial projects like Highway 413, a Highway 401 tunnel feasibility study, new schools, and health care facilities also made the report. \“The construction industry’s resilience shines as we tackle market uncertainties with innovation, from stabilizing costs to embracing workforce development and technological integration,” says Paul Brussow, president of RLB North America, in a statement. “While challenges persist, including inflation, tariffs, and labour shortages, our focus remains on creating new solutions and opportunities that will drive growth and ensure our continued success.
CONSTRUCTION COSTS ENERGY PRICES MATERIALS ECONOMIC GROWTH TRADE POLICY
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