Honolulu construction costs rose 3 percent in the third quarter, higher than in other U.S. cities tracked by property and construction consulting firm Rider Levett Bucknall.
Costs in New York, Boston, San Francisco and Washington, D.C., increased between 1.5 percent and 1.67 percent.
U.S. construction spending is at its highest level since 2008, according to the firm’s Third Quarter 2014 USA Construction Cost Report.
Optimism about the construction industry has been heightened by a strong rebound in construction spending in July.
Costs for the quarter also increased, however, and may increase further, the study warns.
Some of the recent cost increases are associated with a lack of skilled workers to support increased demand, particularly in Honolulu and New York City, the study found.