Chicago Construction Costs Rising Faster Than Expected

Chicago construction costs in Q2 increased 4.4% from a year ago, according to Mortenson Construction’s construction index. That's largely because Chicago is having its busiest commercial development year since '08. Gypsum board costs saw the highest increase at 6.1%, followed by flooring and carpeting (5%), paint and wall coverings (4.8%) and finish carpentry (4.3%). Mortenson originally projected a 4% increase in construction costs this year, but the Q2 numbers pushed their estimate to 4.5% for 2015. Mortenson's index prices a representative non-residential project in Chicago to comparable projects across the country. Chicago’s costs are in line with the national average but rising faster than other markets.

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