Mortenson Feb. 5 released its quarterly Construction Cost Index report for Phoenix along with five other metropolitan areas in the U.S. According to the report, non-residential construction labor, material and equipment costs in the greater Phoenix area are forecasted to increase 3% in 2015.
While costs fell in the latest quarter and there was 6% decline in local, non-residential construction employment last year according to data from the Bureau of Labor Statistics, Phoenix is expected to experience labor shortages due to the effects of healthy construction activity in California, Utah and Colorado. After recording flat growth throughout 2014, a dip in quarter four brought the Phoenix index two points below the national average.
This is the first time the local index has dropped below the national index since early 2011.
The Construction Cost Index is available for download.
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