Construction costs are beginning to stabilize in many areas of the industry. After the high volatility of the second quarter following the invasion of Ukraine and historic inflation, supply chains have begun normalizing and price inflation in some commodities has softened.
Gordian, the leading provider of data insights, technology and expert services for all phases of the building lifecycle, has just released its Q3 2022 updates to both the City Cost Index (CCI) and the RSMeans database of key building materials. While specific local markets may be exceptions to the overall national aggregate trends, here are some notable findings from the Gordian data:
Some costs moderating
- Lumber prices in most categories have declined an average of 10% from peaks in Q2, although national prices in Q3 remain significantly higher than their pre-pandemic levels.
- Interior Install categories — such as Paint, Flooring and Tile — declined an average of 6% over the last quarter.
- Metal prices advanced slightly in Q3, although there are signs that many categories, such as copper, may decline in future quarters.
Other costs still climbing
- Drywall prices continued surging over the last two quarters, with average prices up nearly 23% from average prices in 2021.
- Labor rates are up across the U.S. over the last 12 months, showing an average 6-8% growth from 2021 to 2022.