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Construction Costs Expected to Increase as Much as 6% This Year

The cost increase will vary from 3.5% to 6% depending on the city.

By Kathy Rembisz | February 21, 2024 at 06:50 AM

U.S. construction costs saw an average increase of 4% in 2023. Those costs are set to increase by 3-6% in 2024, according to a report by Currie & Brown.

While construction costs are escalating across the nation, there are variations between major cities. Construction costs in Chicago are predicted to rise 3.5% in 2024, but those same costs in Phoenix are expected to spike 6%. As a result, a $10 million project constructed in Phoenix in 2023 will cost $10.6 million this year. That same project built in Chicago will cost $10.35 million.

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