The non-residential construction industry in Seattle is facing a complex landscape in the third quarter of 2023, with both challenges and opportunities on the horizon. As the nation grapples with high interest rates, Seattle’s construction sector has managed to keep costs essentially flat, perhaps as a result of market dynamics and significantly lower demand for construction services.
One key factor contributing to this leveling is the flattening of material costs and lead times. After enduring successive quarters of cost increases caused by the global supply chain crisis and the ongoing impact of the COVID-19 pandemic, the construction industry is finally seeing some relief, according to a report by Mortenson. In Seattle, non-residential construction costs increased by a mere 0.02 percent in the third quarter of 2023. This aligns with the steady construction activity in the region, as evidenced by the Rider LevettBucknall RLB Crane Index.
The RLB Crane Index, which tracks the number of fixed cranes on construction sites, is a simplified measure of the current pipeline of construction projects. Seattle witnessed an increase in the number of cranes on commercial projects, bringing the total crane count to 45 in the third quarter, with a slight uptick in the Capitol Hill area.
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