Operating costs are rising faster than rents. For many hotels and multifamily assets, labor alone now represents 30–40% of operating expenses. A design decision that adds two minutes to housekeeping per room may not seem significant. But across a 150-key property, that small inefficiency compounds into thousands of labor hours every year. Over the life of […]
Category Archives: Construction & Cost Dynamics
Why Hotel Construction Costs Keep Rising
Why costs aren’t resetting — and how smart developers are staying in control. Hotel construction costs have stabilized from the chaos of the past few years. But they are not coming back down. For developers, the real challenge today isn’t just higher pricing — it’s volatility, late surprises, and budget drift during design. Projects that win right […]
Is Modular Construction Really Cheaper?
Modular Isn’t Cheaper — and That’s Not the Real Problem Most developers have been pitched the same number – modular saves 20% upfront. But today, hard costs are often comparable to site-built. The real advantage isn’t unit cost. It’s capital efficiency: faster delivery means less interest carry and earlier revenue. Get a Modular Cost Reality Check If your […]
Why Modular Construction Projects Slow Down
Why Modular Projects Slow Down And how early design decisions keep them on track Modular construction is meant to move faster. So why do some projects stall before the first module ever ships? Most delays don’t start in the factory. They start when key design decisions aren’t resolved early enough. In modular delivery, design isn’t […]
Lumber Prices Are Climbing Again
📉 Lumber Prices Spiked This Year — and Volatility is Back Are You Ready for Next Year? Softwood lumber prices surged early last year before dropping through the summer. Even with prices lower today, the market remains unstable — and developers are still dealing with unpredictable swings. At the same time, imports from Canada fell 6.1%, tightening supply […]
Insurance Costs Are Climbing Fast
Insurance premiums jumped again this year, and developers are feeling it. But the most significant savings still come from one move: choosing a lower-risk building system. Let’s Review Your Insurance Savings Why Insurance Costs Are Spiking Most developers expect higher premiums in wildfire or hurricane-prone regions. But recent reports show something unexpected: The Midwest has […]
Developers | I-Joists or Wood Trusses – What’s cheapest?
With low lumber prices, many developers are moving towards wood-framed construction, where you will come across two main floor framing systems: I-Joists & Wood Trusses. Each floor system has its unique differences. The system you choose will significantly impact your project’s overall design and pricing. Both framing systems offer benefits and drawbacks. Read on to find […]
Construction Materials | Largest Drop in Nearly 3 Years!
The December producer price index (PPI) report from the Bureau of Labor Statistics (BLS) stated that construction materials prices fell 0.3 percent in the month, seasonally adjusted, the fourth monthly decline in a row. This is the biggest construction input prices drop since April 2020. I have a project I want to discuss! In […]
Developers | Order this Equipment early or expect project delays
A shortage of transformers and other electrical components like switchgear/switchboards and circuit breakers are increasing across the country, risking project delays. So, what’s happening with electrical equipment, and what can you do to avoid delays? Read on. Currently, this problem is critical in states like Arkansas and Florida due to the damage produced by Hurricane Ian. […]
2023 Insights | More than 40% of Multifamily Costs Go To This
Building codes have evolved significantly and become more rigid in recent years. These regulations shape our building designs and shift professional decision-making. But are these codes making your project more expensive? Read on. Regulation accounts for a large portion of apartment development costs, nearly 41% of total expenses. The National Association of Home Builders and the […]