Phoenix construction cost increases outpaced nation in 2019

excavator blue sky heavy machine construction site soil excavate for foundation work by construction worker contractor for background construction concept
Posted at 11:36 AM, Feb 12, 2020
and last updated 2020-02-12 13:36:50-05

PHOENIX — The cost of construction in Phoenix rose faster than the national average during 2019, according to the Mortenson Construction Cost Index.

While both the Phoenix and national averages tracked upward, the national average cost rose by 3.3 percent compared with Phoenix’s 4.5 percent increase. During 2018, Phoenix’s costs also trended slightly higher than the national average, and in 2017 Phoenix’s trend was equal to the national average.

Reinforcing steel material was the building component that saw the largest increase from 2018 to 2019 in Phoenix, with a 10 percent price increase. The cost of installation of reinforcing steel increased by 5.9 percent, and plumbing systems increased by 5.6 percent.

At the same time, construction employment in Phoenix increased 11 percent over 2018, according to the study, which was a smaller increase than the 15 percent growth the previous year.

For more on this story, visit the Phoenix Business Journal here.