Construction costs has continued to rise through the pandemic. According to a new report from construction consultancy firm Rider Levett Bucknall, Los Angeles construction prices have increased more than 2%, while national construction costs are up 1.64%. The report analyzes the first few months of the pandemic, when market activity slowed significantly.

"The current RLB quarterly cost report update, which considers the first few months of the pandemic, shows construction cost continuing to increase nationally but a at slower pace than previously years," Brian Lowder, Los Angeles resident manager at Rider Levett Bucknall, tells GlobeSt.com.

Los Angeles is at the top of the list for construction cost growth. That is likely because Los Angeles development didn't slow down as a result of the pandemic. "Los Angeles construction was still in full swing, material pricing was on the rise, and skilled labor shortages meant that skilled labor came at a premium," says Lowder. "Most projects could continue to move forward under strict health & safety guidelines—as opposed to grinding to a total halt—which resulted in additional project cost impacts. These cost impacts will continue through the end of the pandemic."

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Kelsi Maree Borland

Kelsi Maree Borland is a freelance journalist and magazine writer based in Los Angeles, California. For more than 5 years, she has extensively reported on the commercial real estate industry, covering major deals across all commercial asset classes, investment strategy and capital markets trends, market commentary, economic trends and new technologies disrupting and revolutionizing the industry. Her work appears daily on GlobeSt.com and regularly in Real Estate Forum Magazine. As a magazine writer, she covers lifestyle and travel trends. Her work has appeared in Angeleno, Los Angeles Magazine, Travel and Leisure and more.