Construction costs continue to rise even as the Consumer Price Index decreases, according to Rider Levett Bucknall's National Construction Cost Index. While actual costs of labor and material are increasing slowly, the gap between demand and supply in some areas of the country is leading to pressure on bid prices as increasing construction activity tries to balance out resource availability. According to Rider Levett Bucknall's research, the national average for construction costs between January 1, 2014, and December 31, 2014, rose approximately 5.5 percent.
Of the 12 cities Rider Levett Bucknall compares for its index, Honolulu topped the list with a 13.30 percent increase in construction costs between January 2014 and January 2015. Other cities on the index include:
- San Francisco (6.10 percent)
- Portland (6.02 percent)
- Washington D.C. (5.47 percent)
- Los Angeles (4.90 percent)
- Chicago (4.86 percent)
- Boston (4.69 percent)
- Seattle (4.50 percent)
- New York (4.35 percent)
- Denver (4.12 percent)
- Phoenix (3.67 percent)
- Las Vegas (3.64 percent)
(more on the continuing rise of construction costs...)
