Soaring construction costs could push house prices skyward

The surging cost of construction could push the price of new homes even further up, according to new data from CoreLogic.

The data showed that despite the growth rate slowing in the fourth quarter, national construction costs spiked 7.3% over 2021 – the highest annual growth rate since 2005.

After a 3.8% spike in national construction costs in Q3, quarterly construction cost growth slowed to 1.1% in the fourth quarter, bringing the quarterly growth trend back in line with the five-year average.