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
| Dec 20, 2011
Third annual Gingerbread Build-off winners announced
Nine awards were handed out acknowledging the most unique and creative gingerbread structures completed.
| Dec 20, 2011
BCA’s Best Practices in New Construction available online
This publicly available document is applicable to most building types and distills the long list of guidelines, and longer list of tasks, into easy-to-navigate activities that represent the ideal commissioning process.
| Dec 20, 2011
Aragon Construction leading build-out of foursquare office
The modern, minimalist build-out will have elements of the foursquare “badges” in different aspects of the space, using glass, steel, and vibrantly painted gypsum board.
| Dec 20, 2011
HOAR Construction opens Austin, Texas office
Major projects in central Texas spur firm’s growth.
| Dec 19, 2011
HGA renovates Rowing Center at Cornell University
Renovation provides state-of-the-art waterfront facility.
| Dec 19, 2011
Chicago’s Aqua Tower wins international design award
Aqua was named both regional and international winner of the International Property Award as Best Residential High-Rise Development.
| Dec 19, 2011
Summit Design+Build selected as GC for Chicago recon project
The 130,000 square foot building is being completely renovated.
| Dec 19, 2011
USGBC welcomes new board directors?
Board responsible for articulating and upholding the vision, values, mission of organization.
| Dec 19, 2011
Davis Construction breaks ground on new NIAID property
The new offices will total 490,998 square feet in a 10-story building with two wings of 25,000 square feet each.
