Dive Brief:

• Construction costs rose an average of 5.5% in 2014, according to a new report from international property and construction consultants Rider Levett Bucknall.

• Costs in Honolulu rose the most, at 13%, followed by Washington, DC, New York, Denver, and San Francisco, whose industrywide price hikes spiked by between 4% and 6%, the report said.

• The cost of construction materials and labor, along with a shortage of subcontractors and falling gas prices, has put upward pressure on bid prices in the busiest cities, the report noted.

Dive Insight:

Meanwhile, the size of the construction industry has decreased since the recession started in 2008, the report said. And the U.S. Commerce Department reported last week that construction spending fell in February for the second month in a row.