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Construction Cost Index for buildings, December 2021

Construction costs rose by 7.0 percent in December on an annual basis

Statistical news from Statistics Sweden 2022-01-18 8.00

The Construction Cost Index for multi-dwelling buildings increased by 0.1 between November and December 2021. The annual rate of change in construction costs was 7.0 percent in December.

Construction Cost Index for multi-dwelling buildings, excl. wage drift and value-added tax, 2015=100
  Index Change in percent
  December November 2021–
December 2021
December 2020–
December 2021
Contractors' costs (82%) 123.6 0.1 8.5
Construction clients' costs (18%) 114.4 ‑0.1 0.1
Total Construction cost index (100%) 121.9 0.1 7.0

Changes in the last month

The Construction Cost Index for multi-dwelling buildings increased by 0.1 percent between November and December 2021. In the corresponding period in 2020, the Construction Cost Index increased by 0.6 percent.

Contractors’ costs increased by 0.1 percent, while construction clients’ costs decreased by 0.1 percent. These two groups accounted for 82 percent and 18 percent, respectively, of the Construction Cost Index.

Contractors’ costs for building materials increased by 0.1 percent. In the group ‘building materials’, the cost of other building materials and floor material increased the most, by 0.7 percent and 0.5 percent respectively. All other costs in the building material groups rose slightly or remained unchanged with the exception of woodwork and wood products, which decreased by 0.8 percent and 0.1 percent respectively.

Contractors’ costs in the group ‘transport, fuel and electricity’ decreased by 0.2 percent. This was mainly due to decreases in the cost of diesel oil. Overhead costs increased by 0.2 percent, while the cost of machinery and wages and salaries remained unchanged.

Construction clients’ costs consist of interest and credit costs, costs for plans, and central administration. The decrease of the construction clients’ costs was due to lower interest costs.

Changes in the last year

The Construction Cost Index for multi-dwelling buildings increased by 7.0 percent between December 2020 and December 2021. Contractors’ costs rose by 8.5 percent, which led to an upward contribution to the Construction Cost Index of 7.0 percentage points. Construction clients’ costs increased by 0.1 percent, which had almost no effect to the Construction Cost Index.

Contractors’ costs of building materials increased by 17.2 percent between December 2020 and December 2021. In the group ‘building materials’, the costs of wood products and reinforcement steel remained high. These costs have been rising for some time due to a shortage of raw materials as a result of global demand. The costs of wood products and reinforcement steel increased by 75.8 percent and 58.8 percent respectively. The costs of iron and steel, including reinforcement steel, rose by 39.8 percent. Costs in other building material groups also increased.

Contractors’ costs in the group ‘transport, fuel and electricity’ increased by 14.3 percent. Between December 2020 and December 2021, the cost of diesel oil and electricity rose the most, by 36.7 percent and 31.3 percent respectively. Contractors’ costs for machinery and overhead costs increased by 2.1 percent and 0.8 percent respectively, while costs for wages and salaries rose by 0.2 percent.

Developments in various production factors December 2020–December 2021

Construction Cost Index for multi-dwelling buildings, excl. wage drift and value-added tax.

diagram

The width of the bars represents the production factor’s weight share in percent in the calculation of the Construction Cost Index for multi-dwelling buildings. The height of the bars represents the average price development of each production factor.

Changes by product type, December 2021
Goods Change in percent
  November 2021–
December 2021
December 2020–
December 2021
Wood products ‑0.1 +75.8
Reinforcement steel 0.0 +58.8
Iron and steel* +0.1 +39.8
Concrete products +0.3 +13.5
Other building materials** +0.7 +13.1
Plumbing material +0.3 +11.9
Woodwork ‑0.8 +9.6
Material for painting +0.0 +9.2
Electric material +0.2 +6.8
Floor material +0.5 +6.6
White goods ‑0.0 +4.4
Total building materials +0.1 +17.2

* Includes reinforcement steel. ** Includes materials for thermal insulation, garbage equipment, gypsum and wood-based boards.

Developments in various building products December 2020–December 2021

Construction Cost Index for multi-dwelling buildings, excl. VAT  

diagram

The width of the bars represents the construction material group’s weight share in percent of all construction material in the calculation of the Construction Cost Index for multi-dwelling buildings. The height of the bars represents the average price development of each product category.

Next publishing will be

2022-02-15 08:00.

Statistical Database

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Statistics Sweden

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