Supply chain issues and labor shortages are frustrating many developers right now. Still, there is a high demand for mid-rise apartment buildings. Have you considered alternative designs to meet the current challenges while saving on your budget? When it comes to mid-rise developments, both the podium and wrap designs offer some good solutions. Read on! What […]
Category Archives: Construction & Cost Dynamics
Developers: 2022 Construction Costs Update
Building materials costs soared at a record pace last year due to pandemic-related troubles that overwhelmed global production and supply chains. According to the latest Producer Price Index (PPI) report, costs of materials are still sky-high. Here’s an updated look at building materials prices. Building materials prices increased 20.3%, year-over-year, and have risen 28.7% since January […]
Construction Costs 101: Stay ahead of price changes
We’ve all seen lumber prices make major news, but what’s happening with other material prices might surprise you as well. Building materials costs are rising at a record pace this year. As lumber prices begin to decline, builders face some of the steepest materials price increases in history. Nonresidential construction input prices are up 23.4% […]
Developers: How to Tackle The High Cost of Housing
We are currently facing an imbalance between supply and demand. Rising building materials costs and low inventory have caused the price of an average, new single-family home to increase by $62,300 since April of last year. Skyrocketing prices mean people cannot afford to buy homes, driving down the pace of recent home sales. Will this alarming trend continue? Read on? According […]
With Skyrocketing Lumber Prices—Consider Steel
Material shortages are a widespread concern for all U.S. industries—the multifamily building industry being one. According to the National Association of Home Builders (NAHB), the rise in lumber prices in the past year has added $35,872 to the price of an average new single-family home and $12,966 to the market value of an average new multifamily home. […]
Construction Costs are up 40% | Here’s what to do
Due to the challenges of the pandemic, the prices of construction materials are skyrocketing, and developers are trying to find safer and better ways to build. Back in a 2019 newsletter, I reported that construction costs had increased OVER 40% since 2013. While last year saw a less dramatic increase, the cost of construction continues to rise. COVID-19 has […]
High Wood Prices = Opportunities In Steel
Back in my August newsletter, I stated that wood prices were up 140%. Since then, the numbers have gone up and down, and then back up again! Lumber prices that were around $600/tbf five months ago are now over $900/tbf. Commodity prices are three times higher than before the pandemic. The pandemic is upsetting global supply chains in […]
Build faster like Chick-fil-A
In the past few months, I have talked about modular and offsite construction. Still, when people think about “modular” construction, they imagine one of two things: man-camp temporary structures or multi-story stacked apartment and hotel projects. The truth is that an offsite delivery method can be effective for nearly any type of building product depending on […]
Jobsite Robots = Building Faster
It’s not just in the movies—robots are now a reality. Until recently, construction was one of the least digitized and automated industries in the world—but times may be changing. Robots, drones, autonomous vehicles, and 3D printing are some of the new technologies being lauded in the media. While exciting, many of these inventions are not […]
Developers Decide: Podiums vs Wraps
The growing demand for mid-rise apartment buildings is creating both challenges and opportunities for developers. Land keeps getting more expensive which means maximizing densities is more important than ever! When multifamily developers evaluate a new potential apartment site, they must assess what type of building will be the most efficient based on density, parking, and unit count. […]