Chicago Construction News staff writer
Chicago’s construction industry is seeing a downturn, with the city’s crane count dropping more than 20%, according to the latest biannual Crane Index and Quarterly Cost Report from international property and construction consultancy Rider Levett Bucknall (RLB).
Despite the decline in crane activity, construction costs in Chicago have continued to rise faster than the national average. In the first quarter of 2025, Chicago experienced a significant increase in construction costs, contributing to a national rise of 0.98%. Chicago’s increase surpassed the national trend, similar to patterns seen in other cities such as Boston, Honolulu, and Seattle.
The RLB report, which tracks crane activity and construction costs in 16 key North American cities, showed a notable drop in crane counts in cities like Chicago, Denver, Phoenix, and San Francisco — all seeing declines greater than 20%. In contrast, New York and Toronto saw increases in crane activity.
Paul Brussow, president of RLB North America, commented on the findings: “While headlines often focus on tariff wars and inflation, our research offers a clearer perspective. Although broader economic shifts may influence construction and project costs, rising labor costs are the primary challenge for the industry.”
The report also noted that construction costs are rising at a slower pace compared to the previous year. The national year-over-year construction cost increase dropped to 4.35% in Q1 2025, down from 5.86% in the same period in 2024. However, labor costs remain a significant concern for construction professionals across the industry.
Additionally, the national construction unemployment rate has decreased to 5.4% from 5.7% last year. The Architectural Billings Index (ABI) also saw a slight increase, rising to 45.6 in January from 44.6 in December, signaling a modest uptick in design activity.
The report indicates a general hesitation in the market to proceed with large construction projects amid economic uncertainty. Although interest rates have declined and the rate of construction cost increases has slowed, cities like New York, Toronto, and Honolulu are still seeing strong activity, particularly in residential and mixed-use developments.
Key takeaways:
- Crane counts increased in New York City and Toronto.
- Crane counts held steady in Boston, Calgary, Honolulu, Los Angeles, and Las Vegas.
- Cities reporting crane count declines of more than 20% include Chicago, Denver, Phoenix, Portland, San Francisco, Seattle, and Washington, D.C.
- Despite the decline in crane activity in some markets, areas such as New York and Toronto remain active, signaling potential growth in the construction sector.
