The data collected for the Mortenson Cost Index is showing an increase of nearly 5% nationally and 2.4% in Chicago for the first quarter of 2021. This is the largest single quarter increase since its inception, driven by significant disruptions to the supply chain and increases in commodity costs. This will potentially moderate throughout the year as capacity returns to pre-pandemic levels. The current upward pressure is somewhat offset by a competitive market with subcontractors working to fill their capacity. As markets rebound with increased private and government spending, the industry may see additional upward pressure on pricing. We continue to monitor this somewhat unpredictable market and know that a resilient, agile approach to projects will be necessary in the months to come.
For nationwide construction cost index data visit: Mortenson.com/Cost-Index.
Download the Q1 2022 Construction Cost Index report for your region: