• Despite the global collapse of commodity prices, local prices of construction materials have not fallen.
  • The size of the construction workforce remains well below pre-recession levels, which has led to labor shortages in several major markets.
  • Growth in multifamily construction activity is partially offsetting the steep decline in single-family homebuilding compared with the last cycle, driving up construction costs.
  • Supply-demand imbalances have contributed to strong growth in average construction wages, particularly in the
  • Nonetheless, the pace of overall construction cost inflation has been moderate in recent years, relative to the prior cycle.