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.
The 2024 cost escalation for specific cities in the U.S. is as follows: Houston, 4%; Miami, 4.5%; Minneapolis, 4.5%; New York, 4%; Portland, 5%; San Francisco, 4.75%; Seattle, 4.5%; and Washington, D.C., 4.75%. Chicago and Phoenix fall at the low and high end at 3.5% and 6%, respectively.
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