Building costs in US rising at record pace, report says

Construction site (Photo: Pedro Moura Pinheiro on Flickr)
Construction site (Photo: Pedro Moura Pinheiro on Flickr)

Construction costs in the U.S. hit a record level after declining slightly in 2008, according to a report by property and construction firm Rider Levett Bucknall.

The firm’s quarterly index of construction costs, which are rising at the fastest pace in six years, increased 1.66 percent between July and Oct. 1. According to the report, this is the largest three month increase in building costs since the beginning of 2008.

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The numbers reflect the housing market’s improvement, where demand for labor and construction material has driven up construction costs. The report also predicts construction starts will rise about 10 percent next year, or nearly double the estimated growth rate of 2014.

“General optimism with the construction sector has continued to rise,” the report said. [Wall Street Journal] — Kerry Barger