CHICAGO—Construction costs are on the upswing throughout much of the US, but increases in Chicago have started outpacing other metro areas, according to a study by Mortenson Construction. With supplies of some key materials, equipment and labor tightening, the Chicago-based builder and developer has raised its estimate for non-residential construction cost increases in Chicago for 2017 from 4% to 4.5%, the highest among the major markets examined. Chicago costs are up 4.9% compared to the same period a year ago.
By contrast, Mortenson says the Phoenix cost index increased 3.6% versus a year ago. This is in line with trends company officials see at the national level.
“Chicago construction activity initially lagged other markets in recovering after the 2008 recession, but it has gradually caught up and is strong now,” Dennis McGreal, chief estimator for Mortenson Construction's Chicago office, tells GlobeSt.com. Costs in the metro area jumped 4.3% in 2016.
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Brian J. Rogal
Brian J. Rogal is a Chicago-based freelance writer with years of experience as an investigative reporter and editor, most notably at The Chicago Reporter, where he concentrated on housing issues. He also has written extensively on alternative energy and the payments card industry for national trade publications.
