Seattle’s construction costs have experienced a significant increase of 7.76% between October 2022 and October 2023, according to the fourth-quarter construction cost report by Rider Levett Bucknall (RLB). This rise in costs is higher than the national average of 5.9%. The Puget Sound Business Journal reported that developers in Seattle are facing challenges due to rising borrowing costs, inflation, and some of the highest wages in the country.
According to data from the U.S. Bureau of Labor Statistics, Seattle’s average hourly wage for workers in the construction industry is $37.58 compared to $28.08 nationally.
Despite these mounting expenses, several major developments are underway in Seattle including Harvest – a mixed-use community with an estimated cost of $700 million – and Trace 4001 – a recently financed mixed-use housing development.
In addition to residential projects, Seattle also leads office development with approximately 6.59 million square feet under construction despite having one of lowest occupancy rates among major cities nationwide.
The article “Seattle Construction Costs Outpace Rest Of U.S.” published on Connect CRE highlights how soaring prices have affected this city’s building sector more significantly than other areas across America during Q4 as per Rider Levett Bucknall (RLB) report findings . Accordingto Puget Sound Business Journal , high interest rates plus inflationary pressures make it harder for local developers who must contend against nation-leading salaries averaging at$37 .58/hour versus US-wide mean pay rateof$28 .08 /hour based on latest figures from United States Bureau Of Labour Statistics .
Nevertheless , many large-scale projects continue unabated such as Harvest ($700M budgeted) & Trace4001( just secured financing ) both being multi-purpose complexes within Greater Seatle area .
Moreover , even though only third worst vacancy ratio exists here when comparing top metropolises nationwide ; nevertheless there still remains over 6 .59 million sq . ft under construction for office space – a figure that tops all other cities in America.
