Coronavirus Clouds Construction Cost Projections

Originally on March 04, 2020, by Erika Morphy via

Construction costs, which have been on the rise for years, were slated for another increase this year. But there was good news: cost growth was expected to be at a slower pace than previous years, according to the JLL 2020 Construction Outlook. Unfortunately there is also bad news: the coronavirus has just added an element of uncertainty to projections about construction costs.

Leaving the coronavirus aside, JLL estimated that that total construction cost inflation would be in the range of 1 to 3%, with material and labor costs both expected to grow moderately as well for this year. Labor costs are expected to rise by 2 to 4%, and material costs to change at a slightly slower pace, in the range of -1 to 4%.

However in recent weeks, the coronavirus has upended supply chains around the world and its effect on construction costs in the US is still developing, JLL said.

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