Student Housing Construction Costs Brief Winter 2023

Major indicators are pointing towards slower construction market in 2023. Commodity pricing is leveling after two years of hyper inflation. Architectural billings are down. The construction confidence index is down. Wage increases are getting closer to normal, however labor supply is still short. The overall construction market is expected to reduce by 6% this year, but there is a shift in sector spending. Warehousing, data centers, and infrastructure volumes are expected to grow, while residential and commercial will see lower volumes in 2023. We anticipate a 1/2% – 3/4% per month escalation rate, much lower than the previous six quarters.

This brief was prepared by David Mellema, Preconstruction Director; Shannon Spencer, Preconstruction Manager; and Emily Kessinger, Sr. Business Development Manager of The Weitz Company’s student housing team.

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