Turner Construction Company announced that the Fourth Quarter 2022 Turner Building Cost Index—which measures costs in the non-residential building construction market in the United States—had increased to the value of 1332. This represents a 1.6% quarterly increase from the Third Quarter 2022 and an 8.29% yearly increase from the Fourth Quarter 2021.
“During the Fourth Quarter of 2022, costs for materials such as steel, lumber, and aluminum began to stabilize. Transportation costs stabilized as the cost of fuel came down,” said Attilio Rivetti, the Turner vice president responsible for compiling the Cost Index. Attilio continued, “The construction industry continues to experience a shortage of skilled labor that is contributing to increases in costs. Some cities with considerably robust markets are experiencing cost increases at a higher rate than the national average. Project outcomes are enhanced when contractors, designers, suppliers, manufacturers, and clients engage early to develop solutions that address the issues facing the industry and building projects.”
Turner has prepared the construction cost forecast for more than 80 years. The building costs and price trends tracked by the Turner Building Cost Index may or may not reflect regional conditions in any given quarter. The Cost Index is determined by several factors considered on a nationwide basis, including labor rates and productivity, material prices and the competitive condition of the marketplace. This index does not necessarily conform to other published indices because others do not generally take all of these factors into account.