April 20, 2018
Comparing the first quarter of 2017 to 2018, construction costs are going up. According to a report published by Rider Levett Bucknall, the national average increase is roughly 4.2%. While GDP dipped to 2.5% closing out 2017 from 3.3% in the third quarter, the effects of the tariffs announced on aluminum and steel are less visible than initially expected.
Los Angeles topped the list of most expensive place to build, with a year-over-year increase of 7.59%, closely followed by San Francisco which saw a rise of 6.23%. On the other hand, Honolulu saw a decrease in costs of 1.7%. This change is closest to Canada’s 1.06% delta reported in Toronto, painting a different picture between the United States and her northern neighbor.
The report’s graphics indicate that the construction cycle is nearing its peak, especially in cities like Chicago, Portland, Honolulu and Denver. Cities like New York, Boston and San Francisco are showing to be at the top of the upturn.
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