That's according to CBRE Group Inc. , which is forecasting a 14.1% annual increase in U.S. construction costs by the end of 2022, thanks to industry labor shortages, inflation, supply chain disruptions, ongoing impacts from the Covid-19 pandemic and the war in Ukraine. That annual price increase, if it occurs, would outpace the 11.5% escalation in construction costs seen last year.
"When you have everyone pre-purchasing materials, a lot of people are front-loading cash flows and schedules to make sure they have the labor and materials," McNamara said. Despite challenges associated with construction cost increases, Dallas-based Trammell Crow Co.
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