PHOENIX — Rider Levett Bucknall (RLB) has unveiled its latest Quarterly Cost Report on the North American construction industry in 14 key markets with an optimistic view for the sector.
With current data from mid-Q4 2024, the latest RLB report shows the national average increase in construction costs for the U.S. was 1.11 per cent, explains 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.
Compared to 2023, the cost of many building materials increased at a much slower rate in Q4 2024.
The report shows structural block increased 5.2 per cent; gypsum building materials 4.8 per cent; cement 4.7 per cent; lumber 4.6 per cent; and ready-mix concrete 3.7 per cent. Copper was among the highest price growth at 14.4 per cent but prices for steel products decreased by 6.9 per cent.
“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 per cent 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 per cent, down .1 per cent in the same time period last year.
When it comes to Canada, two provinces stood out in the report.
“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 per cent 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 per cent 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.”
RLB’s North American practice has offices in 25 cities across North America.
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