Construction costs are beginning to stabilize in many areas of the industry as supply chains have begun normalizing and price inflation in some commodities has softened. Most notably, steel prices declined significantly from their high points in the third quarter, with national average prices down approximately 12%.
Gordian, the leading provider of data insights, technology and expert services for all phases of the building lifecycle, is releasing the Q4 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:
- The 2022 Q4 Historical Cost Index (HCI) marks the first decline in the national average index since 2020 Q3, with a slight drop of 0.04% from the previous quarter. However, it should be noted that some local markets continue to experience price escalation.
- Drywall prices increased for the seventh consecutive quarter, adding another 8% to bring national average prices to their highest point since the residential-driven peaks of 2020Q3.
- Roofing materials such as asphalt felt, EPDM membrane, and insulation board all increased in average price over the last quarter and are up over 40% from pricing levels a year ago in 2021Q4.
- After two consecutive quarters of increases, most Canadian cities experienced a drop in local prices – although this trend repeats annually, this 2022Q4’s decline is significantly larger than in previous years.
- Western states such as Nevada, Arizona, Wyoming and Utah demonstrated the highest average increases in local prices, climbing an average of 2.7% from the 2022Q3.
For more information, please visit Gordian at www.gordian.com.