Construction cost increases in Phoenix come in below national averages

Article originally posted on Phoenix Business Journal on July 9, 2024

Phoenix has seen a second consecutive quarter with construction cost increases of less than 1%.

A report from Phoenix-based Rider Levett Bucknall, a construction advisory, cost and project management firm, found Phoenix came in below national averages for cost increases, experiencing a 0.94% spike from the first quarter. The national average increase in construction costs was 1.12% over the previous quarter.

“The construction industry continues to experience strong demand, but uncertainty is being fueled by high interest rates and increasing labor costs for the rest of 2024. The approaching presidential election and potential policy adjustments are also contributing to this uncertainty,” says Paul Brussow, president of RLB North America in a statement. “Nevertheless, overall growth in the construction sector is expected to remain positive this year.”

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