Coldwell Banker Richard Ellis (CBRE) is forecasting a 14.1% year-on-year increase in U.S. construction costs by the close of 2022.
It is the largest jump since CBRE began making cost projections in 2007. The firm cited financial pressures such as inflation, labor shortages, supply chain challenges, Covid-19, and Russia’s invasion of Ukraine as causes for the sharp rise.
CBRE predicts relief next year, with cost inflation falling to 4.3% and further moderation to 2.9% in 2024. Although the firm sees inflation and supply chain problems receding over the next two years, it foresees that delays in material deliveries, labor scarcity, and semiconductor shortages will endure.
The firm’s forecast notes that demand for new projects remains strong despite cost pressures.
Related Stories
MFPRO+ News | Dec 18, 2023
Berkeley, Calif., raises building height limits in downtown area
Facing a severe housing shortage, the City of Berkeley, Calif., increased the height limits on residential buildings to 12 stories in the area close to the University of California campus.
Green | Dec 18, 2023
Class B commercial properties gain more from LEED certification than Class A buildings
Class B office properties that are LEED certified command a greater relative benefit than LEED-certified Class A buildings, according to analysis from CBRE. The Class B LEED rent advantage over non-LEED is about three times larger than the premium earned by Class A LEED buildings.
Codes and Standards | Dec 18, 2023
ASHRAE releases guide on grid interactivity in the decarbonization process
A guide focusing on the critical role of grid interactivity in building decarbonization was recently published by ASHRAE. The Grid-Interactive Buildings for Decarbonization: Design and Operation Resource Guide provides information on maximizing carbon reduction through buildings’ interaction with the electric power grid.
Sustainable Design and Construction | Dec 14, 2023
Suffolk Construction establishes Suffolk Sustainability Group
Design veterans Steven Burke and Michael Swenson will lead the new sustainability initiative for Suffolk.
75 Top Building Products | Dec 13, 2023
75 top building products for 2023
From a bladeless rooftop wind energy system, to a troffer light fixture with built-in continuous visible light disinfection, innovation is plentiful in Building Design+Construction's annual 75 Top Products report.Â
Giants 400 | Dec 12, 2023
Top 15 Veterans Affairs Facility Construction Firms for 2023
Walsh Group, Turner Construction, BL Harbert, and Hoar Construction top BD+C's ranking of the nation's largest Veterans Affairs facility general contractors and construction management (CM) firms for 2023, as reported in Building Design+Construction's 2023 Giants 400 Report.Â
Giants 400 | Dec 12, 2023
Top 35 Military Facility Construction Firms for 2023
Hensel Phelps, DPR Construction, Walsh Group, and Whiting-Turner top BD+C's ranking of the nation's largest military facility general contractors and construction management (CM) firms for 2023, as reported in Building Design+Construction's 2023 Giants 400 Report.Â
Contractors | Dec 12, 2023
The average U.S. contractor has 8.5 months worth of construction work in the pipeline, as of November 2023
Associated Builders and Contractors reported today that its Construction Backlog Indicator inched up to 8.5 months in November from 8.4 months in October, according to an ABC member survey conducted Nov. 20 to Dec. 4. The reading is down 0.7 months from November 2022.
Giants 400 | Dec 11, 2023
Top 80 Local Government Building Construction Firms for 2023
Turner Construction, Clark Group, Holder Construction, and Pepper Construction top BD+C's ranking of the nation's largest local government building general contractors and construction management (CM) firms for 2023, as reported in Building Design+Construction's 2023 Giants 400 Report.
Giants 400 | Dec 11, 2023
Top 50 State Government Building Construction Firms for 2023
Hensel Phelps, Turner Construction, Clark Group, and PCL Construction top BD+C's ranking of the nation's largest state government building general contractors and construction management (CM) firms for 2023, as reported in Building Design+Construction's 2023 Giants 400 Report.Â