Construction Costs Going Up in Many Markets

The $505 million Mercyhealth Riverside Campus that Mortenson Construction is building in Rockford, IL. Photo Credit: AECOM

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.