Construction Cost Index for buildings, September 2021
Construction costs rose by 7.8 percent in September on an annual basis
Statistical news from Statistics Sweden 2021-10-15 9.30
The Construction Cost Index for multi-dwelling buildings rose by 0.5 percent between August and September 2021. The annual rate of change in construction costs was 7.8 percent in September, compared with August 2021.
| Index | Change in percent | |||
|---|---|---|---|---|
| September | August 2021– September 2021 |
September 2020– September 2021 |
||
| Contractors´costs (82%) | 122.1 | 0.6 | 8.8 | |
| Construction clients’ costs (18%) | 116.5 | 0.2 | 3.0 | |
| Total Construction cost index (100%) | 121.1 | 0.5 | 7.8 | |
Changes in the last month
The Construction Cost Index for multi-dwelling buildings increased by 0.5 percent in September compared with August. In the corresponding period in 2020, the Construction Cost Index decreased by 0.2 percent.
Contractors’ costs increased by 0.6 percent between August and September 2021 and construction clients’ costs increased by 0.2 percent. These two groups accounted for 82 percent and 18 percent, respectively, of the Construction Cost Index.
Contractors’ costs for building materials increased by 1.2 percent between August and September 2021. In the group ‘building materials’, the cost of wood products increased by 3.1 percent. This was considerably lower than in July 2021, at 16.8 percent and in August 2021, at 17.9 percent. The costs of plumbing material rose by 2.5 percent. All costs in the building material groups rose slightly or remained unchanged with the exception of white goods, which decreased.
Contractors’ costs in the group ‘transport, fuel and electricity’ increased by 0.6 percent. This was mainly due to a 2.0 percent increase in the cost of diesel oil. Overhead costs increased by 0.2 percent, while costs of wages and salaries and machinery costs remained unchanged.
Construction clients’ costs consist of interest and credit costs, costs for plans, and central administration. All of the construction clients’ costs rose slightly or remained unchanged.
Changes in the last year
The Construction Cost Index for multi-dwelling buildings increased by 7.8 percent between September 2020 and September 2021. Contractors’ costs rose by 8.8 percent, which led to an upward contribution to the Construction Cost Index of 7.3 percentage points. Construction clients’ costs increased by 3.0 percent, which led to an upward contribution to the Construction Cost Index of 0.5 percentage points.
Contractors’ costs of building materials increased by 16.0 percent between September 2020 and September 2021. In the group ‘building materials’, the costs of wood products and reinforcement steel continued to rise. These costs have been rising for some time due to a shortage of raw materials as a result of rising global demand. The costs of wood products and reinforcement steel increased by 89.1 percent and 67.4 percent respectively. The costs of iron and steel, including reinforcement steel, rose by 39.6 percent. All costs in building material groups rose.
Contractors’ costs for wages and salaries increased by 3.0 percent between September 2020 and September 2021. Contractors’ costs in the group ‘transport, fuel and electricity’ increased by 11.5 percent. Between September 2020 and September 2021, the cost of diesel oil rose by 31.1 percent. The increases have mainly occurred in 2021. Overhead costs rose by 2.2 percent, and machinery costs increased by 0.4 percent.
Construction Cost Index for multi-dwelling buildings, excl. wage drift and value-added tax.
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.
| Goods | Change in percent | ||
|---|---|---|---|
| August 2021– September 2021 |
September 2020– September 2021 |
||
| Wood products | +3.1 | +89.1 | |
| Reinforcement steel | +1.6 | +67.4 | |
| Iron and steel* | +1.5 | +39.6 | |
| Concrete products | +0.3 | +12.6 | |
| Plumbing material | +2.5 | +11.5 | |
| Other building materials** | +0.1 | +9.7 | |
| Electric material | +0.9 | +6.6 | |
| Floor material | +0.5 | +5.2 | |
| Material for painting | 0.0 | +4.1 | |
| Woodwork | +2.1 | +3.9 | |
| White goods | ‑0.2 | +1.8 | |
| Total building materials | +1.2 | +16.0 | |
* Includes reinforcement steel. ** Includes materials for thermal insulation, garbage equipment, gypsum and wood-based boards.
Construction Cost Index for multi-dwelling buildings, excl. VAT
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.
Definitions and explanations
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.
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