The data collected for the Mortenson Cost Index is showing an increase of 2.9% nationally for the third quarter of 2021. The construction market, like many, is experiencing unprecedented inflationary headwinds in 2021, which are presenting unique challenges. Market volatility continues as trade partners work through supply chain and labor availability challenges. The rate of increase is trending lower but still substantially above historical levels and remains variable. This variability is driven by multiple factors including project type, time to market, geography, etc. Many of our projects have increased less than the reporting from our trade partners for this index, some as low as 3-5%. While less than experienced earlier this year, this persistent fluctuation continues to present unique challenges for projects in the near term and agility in our planning is required.
For nationwide construction cost index data visit: Mortenson.com/Cost-Index.
Download the Q3 2021 Construction Cost Index report for your region: