Construction costs in metro Phoenix have risen 8.12% for the period from October 1st, 2020 to October 1st, 2021, according to the latest Rider Levett Bucknall North America Quarterly Construction Cost Report. The average for the 16 cities followed in the report was 7.42%.
Local RLB representatives said ongoing supply chain issues and labor and materials disruptions from mega-projects like the Taiwan Semiconductor Manufacturing Co. plant in north Phoenix and the Intel expansion in Chandler, as well as upcoming public projects funded through the Infrastructure Investment and Jobs Act, are partly responsible.
They add, however, the rising costs in and of themselves do not appear to be contributing to project delays yet.
National RLB officials said they expect the currently aggressive rate of cost increases to continue “until some heat goes out of the economy.” (Source)