News & Opinions
The latest news and insights from Hanley Wood’s outspoken experts and key thought-leaders throughout the residential and commercial design and construction industry.
Concrete Construction / October 8, 2013
Turner Construction Company announced that the Third Quarter 2013 Turner Building Cost Index — which measures costs in the non-residential building construction market in the United States — has increased to a value of 868. This reflects a 1.05 percent increase from the Second Quarter 2013 and 4.33 percent annual increase from the Third Quarter 2012. Turner VP Karl F. Almstead said, “Material prices are increasing, but generally off their highs of the year and labor costs remain constrained. The increase in construction activity has enabled pricing to cautiously increase amongRead More
Michael Neal / NAHB / July 18, 2013
After a period of significant increases, the growth in the prices of building materials has slowed according to June Producer Price data from the Bureau of Labor Statistics (BLS).
Year-over-year growth in gypsum prices slowed by 3.7 percentage points to 15.6%. Annual softwood lumber price growth decelerated by 8.7 percentage points to 8.0%. And Oriented Strand Board (OSB) prices grew by 37.0% year-over-year in June, still high, but 24.8 percentage points less than the year-over-year growth recorded in May.
The slowing of the growth of building material prices is good news for builders andRead More
David Crowe, NAHB / BUILDER / July 15, 2013
A typical home’s total materials costs increased 5 percent during the past six months; higher in the South and West.
Home building material prices soared earlier this year although some calm arrived recently. Material costs account for about one-third of a new home’s selling price, so a 10 percent rise in material costs equates to an average $8,500 price increase per house. The current conservative appraisal environment makes that kind of increase near impossible. Two recent NAHB surveys highlight the extent of these trends and the materials most affected.
The NAHB surveyedRead More
David Crowe / NAHB / July 11, 2013
Rising home prices and increasing residential construction have been the clearest signs of the housing rebound that took hold in 2012 and continues into 2013. Data from the start of the summer are consistent with these long-run trends, offering a bright spot in otherwise lackluster economic environment.
Total private residential construction spending increased to a seasonally adjusted annual rate of $328.6 billion in May 2013, the fastest pace of residential construction since October 2008. The reading is 1.2% above the positively revised April estimate and 22% higher over a year ago.Read More
Randyl Drummer / CoStar / June 18, 2013
Turner Construction Index Shows 4% Annual Increase in Construction Costs
Non-residential construction costs rose in the second quarter as larger urban markets appear to be expanding more rapidly than other regions, according to Turner Construction Co.’s most recent Building Cost Index.
Turner’s Second Quarter 2013 Building Cost Index measuring costs in the U.S. non-residential building sector was 859, an increase of 1.18% from the previous quarter and 4% from the same quarter a year ago.
In addition to rising activity in larger urban areas, contributing to the increaseRead More