The Truth About School Construction Costs
Terry L. Stoops,
Education Policy Analyst; John Locke Foundation
The State of Construction Costs in the United States
Increasing cost (PPI) of construction materials began in 2004 (10.1%) and continued in 2005 (6.1%)
U.S. Construction Costs
The cost (PPI) of wood kept residential construction costs down in 2005
What was the effect of hurricanes Katrina and Rita?
For the most part, construction completed in 2005 was so far along that the natural and economic storms of the last 12 months did not affect them.
11th Annual School Construction Report
February, 2006
National trends in average cost (per square foot)
| 2004 | 2005 | Feb 2006 | Change | |
|---|---|---|---|---|
| New Elementary | $124 | $127 | $131 | +5.6% |
| Additions | $168 | $166 | $166 | -1.2% |
| New Middle | $124 | $134 | $136 | +9.7% |
| Additions | $124 | $134 | $136 | +9.7% |
| New High | $131 | $142 | $138 | +5.3% |
| Additions | $173 | $204 | $238 | +37.6% |
Consumer Price Index (CPI-U) increased 6.7% during this period
What are the prospects for materials used in school construction in 2006? Not bad.
- Price of diesel fuel and hydrocarbon-based products will be lower than expected
- Price of cement will continue to increase significantly
- Price of steel will level off
- Price of gypsum products will increase moderately
The State of Construction Costs in North Carolina
.Wake is facing scrutiny because its construction costs are higher than in nearby districts such as Johnston County. But school administrators say site development costs are lower in Johnston, saving money for that district.
News & Observer
March 22, 2006
N.C. Construction Costs
| Site development costs: 2005 Burke: $5.5 m Guilford: $5.2 m CMS: $6.4 m 2004 Durham: $2.8 m Rowan-Salisbury: $3.9 m 2003 Forsyth: $3 m (2) |
Site development totals: 2005 $34 m (12 projects) 2004 $20 m (15 projects) 2003 $12 m (8 projects) |