ECONOMIC INSTABILITY CONTINUES TO AFFECT CONSTRUCTION COSTS
The data collected for the Mortenson Cost Index is showing an increase of 2.3% nationally and 2.4% in Minneapolis for the first quarter of 2022. The construction market, as with many, continues to experience significant inflationary challenges in early 2022. Optimism for moderating costs in the latter half of the year has lessened and will be dependent of a variety of external factors including global stability, supply chain continuity, labor markets and general economic conditions in the U.S.
CONSTRUCTION COST INDEX
(JANUARY 2009 = 100)
The Mortenson Cost Index is showing a single quarter increase of 2.3% nationally and 2.4% in Minneapolis. Over the last twelve months, costs increased 18.3% nationally and 18.2% in Minneapolis.
Building construction employment in the Minneapolis metro region reached 19,000 in March 2022. This is an increase of 2% (400 jobs) compared to March 2021. Labor availability will remain a top concern throughout 2022.
Source: Bureau of Labor Statistics
MATERIAL PRICING CHANGES
(Cumulative Q1 2020 to Q1 2022)
Costs for building materials remain escalated due to manufacturing issues, supply chain delays, rising fuel costs, and the Russian invasion of Ukraine.
About this report: The Mortenson Construction cost index is calculated quarterly by pricing a representative non-residential construction project in Minneapolis and other geographies throughout the country. Local employment figures are from the Bureau of Labor Statistics.