Connecting
the dots
Construction cost trends
that will shape 2020
Mortenson analysts have crunched the latest quarterly
numbers and pulled out the trends that matter.
Below is the insight you need going into the next quarter.
Overall Construction Cost Index Q4 2019
(JANUARY 2009 = 100)
Overall Construction Cost Index Q4 2019
(JANUARY 2009 = 100)
Construction Cost Index by City
The Mortenson Construction Cost Index is calculated quarterly by pricing a representative non-residential construction project in geographies throughout the country. Click a city below to jump to the latest findings.
Chicago Construction Cost Index
(JANUARY 2009 = 100)
Advice for Building Owners in Chicago
The Chicago construction cost index ended 2019 at an all-time high and is on pace with our national index. While we continue to monitor the impact of both geopolitical and economic uncertainty, all signs point to stability in the construction industry in 2020. The Dodge Momentum Index (a leading indicator of future construction activity) increased in December, and there is a strong backlog of work in the market. Construction employment gains will be modest and materials costs are holding steady. We recommend owners plan on a 3% to 4% increase in 2020.
Denver Construction Cost Index
(JANUARY 2009 = 100)
Advice for Building Owners in Denver
The Denver construction cost index ended 2019 at an all-time high and is tracking higher than our national index. The Dodge Momentum Index (a leading indicator of future construction activity) increased in December, indicating a strong backlog of work in the market, and we continue to monitor the impact of both geopolitical and economic uncertainty. Construction employment and materials costs should remain within the current trend for the foreseeable future. We recommend owners plan on a 3% increase in 2020.
Milwaukee Construction Cost Index
(JANUARY 2009 = 100)
Advice for Building Owners in Milwaukee
The Milwaukee construction cost index ended 2019 at an all-time high and is on pace with our national index. While we continue to monitor the impact of both geopolitical and economic uncertainty, all signs point to stability for the construction industry in 2020. The Dodge Momentum Index (a leading indicator of future construction activity) increased in December, and there is a strong backlog of work in the market. Construction employment gains will be modest and materials costs are holding steady. We recommend owners plan on a 3% to 4%increase in 2020.
Minneapolis Construction Cost Index
(JANUARY 2009 = 100)
Advice for Building Owners in Minneapolis
The Minneapolis construction cost index held steady in 2019, trailing behind our national index which saw 3.3 percent year-over-year growth. While we continue to monitor the impact of both geopolitical and economic uncertainty, all signs point to stability for the construction industry in 2020. The Dodge Momentum Index (a leading indicator of future construction activity) increased in December, with moderate backlog in the market. Construction employment and materials costs should remain steady for the foreseeable future. We recommend owners plan on a 2.5% to 3.5% increase in 2020.
Phoenix Construction Cost Index
(JANUARY 2009 = 100)
Advice for Building Owners in Phoenix
Construction costs and employment trends in Phoenix outpaced the nation in 2019. While we continue to monitor the impact of both geopolitical and economic uncertainty, all signs point to stability in the construction industry in 2020. The Dodge Momentum Index (a leading indicator of future construction activity) increased in December, and there is a strong backlog of work in the market. Construction employment and materials costs should remain steady for the foreseeable future. We recommend owners plan on a 4% to 5% increase in 2020.
Portland Construction Cost Index
(JANUARY 2009 = 100)
Advice for Building Owners in Portland
The Portland construction cost index increased nearly 5 percent in 2019 and is tracking higher than our national index. While we continue to monitor the impact of both geopolitical and economic uncertainty, all signs point to stability for the construction industry in 2020. The Dodge Momentum Index (a leading indicator of future construction activity) increased in December, and there is a strong backlog of work in the market. Construction employment and materials costs should remain steady for the foreseeable future. We recommend owners plan on a 3.65% to 4.25% increase in 2020.
Seattle Construction Cost Index
(JANUARY 2009 = 100)
Advice for Building Owners in Seattle
The Seattle construction cost index ended 2019 at an all-time high and is tracking higher than our national index. While we continue to monitor the impact of both geopolitical and economic uncertainty, all signs point to stability for the construction industry in 2020. The Dodge Momentum Index (a leading indicator of future construction activity) increased in December, and there is a strong backlog of work in the market. Construction employment and materials costs should remain steady for the foreseeable future. We recommend owners plan on a 3% to 3.5% increase in 2020.