L.A. Construction Costs Up 4.4%

Construction costs in Los Angeles are increasing below the national average and several other popular West Coast markets. According to property and construction consultancy firm Rider Levett Bucknall, construction costs in Los Angeles increased 4.4% in 2018, while costs nationally were up 5.73%. Phoenix, San Francisco, Portland and Seattle, experienced some of the highest construction costs increases in the nation, with Portland seeing the highest price increase on the West Coast at 7.13%.

“If you look at our index, the 4.4% increase is a standard amount of growth,” Brian Lowder, principal at Rider Levett Bucknall, tells GlobeSt.com. “Despite the increase in construction costs, we are continuing to experience significant projects in the Los Angeles area. We are seeing a healthy economy, and I don’t think that we have reached the peak of the cycle yet.”

Los Angeles actually ranks among the US markets with the lowest increase in construction costs. Las Vegas and Denver were the only on the Western US markets to make the cut, with 5.41% and 4.02% increase respectively.