Construction Pricing Update
Construction Costs Lowest in 5 Years!
After several years of unprecedented escalation, construction pricing for land development infrastructure is showing meaningful signs of stabilization. EHRA's Construction Services team has analyzed construction bid results from projects across the Greater Houston area and many key infrastructure components have reached their lowest average pricing levels in the past five years.
While pricing remains above pre-2020 levels, increased contractor competition and improved material availability and a more balanced market has led to the recent favorable bidding conditions throughout much of the region.
This result could be a welcomed shift for developers, municipalities and utility districts seeking to maximize project budgets and advance capital improvement programs.
In the charts below, we highlight four key construction cost indicators that serve as benchmarks for many public infrastructure and land development projects: 8-inch waterline, 8-inch sanitary sewer, 24-inch storm sewer and 6-inch pavement. These trends provide valuable insight into current market conditions and can help inform planning, budgeting and project timing decisions.
Let's take a closer look at the numbers.
Water Trends
8" PVC Waterline costs have continued to trend downward from the peak pricing near the end of 2023.
Sanitary Trends
8” PVC Sanitary sewer have continued to trend downward from the peak pricing near the end of 2023.
Drainage Trends
24” RCP Storm Drainage Pipe Cost have continued to trend downward from the peak pricing near the end of 2023.
Paving Trends
6” Concrete Paving cost have continued to trend downward from the peak pricing near the end of 2023.
Although market conditions can change quickly, current trends indicate a favorable environment for moving projects forward. EHRA will continue monitoring construction pricing across the region and sharing updates to help our clients make informed planning and budgeting decisions.
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