Construction costs in Chicago are rising faster than other major metropolitan areas, but at a slower rate than last year, according to Crain’s Chicago Business. A report from Rider Levett Bucknall (RLB), a construction consulting firm, showed that an index of Chicago-area construction costs increased 9.2% between April 2022 and April 2023 – the highest jump among 12 large urban centers including New York (6.3%), Los Angeles (6.5%) and Washington D.C.(6.8%).
Dodge Construction Network reported that total U.S construction starts decreased 6% during the first five months of this year compared to the same period in 2022; however, some materials still experienced double-digit cost increases as noted by RLB – cement prices rose 13%, gypsum prices jumped 12%, while lumber dropped 32% and steel product prices fell 14%.
It is clear that despite slowing growth rates for overall construction costs in many cities across America including Chicago, certain materials remain subject to significant price fluctuations which must be taken into account when planning projects or investments related to real estate development or renovation works .
