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 recent bid results from projects across the Greater Houston area and found that 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, improved material availability and a more balanced market have contributed to favorable bidding conditions throughout much of the region. The result is a welcome 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 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 experienced in 2022 and early 2023. Improved material availability and increased contractor participation have helped bring bid prices back to levels not seen in several years.
Sanitary Trends
8” PVC Sanitary sewer costs have shown steady improvement as market conditions have normalized. Recent bid results indicate increased pricing consistency, providing greater confidence for project budgeting and long-term planning.
Drainage Trends
24” RCP Storm Drain pricing has experienced one of the more noticeable corrections in recent years. Competitive bidding and reduced supply chain pressures have contributed to lower installation costs across many projects.
Paving Trends
6” Concrete Paving pricing has continued to soften as asphalt and concrete markets have stabilized. Current bid trends suggest that paving costs are now approaching levels last seen before the rapid escalation period of 2021-2022.
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.
Categories
