Building materials costs have soared in the past few months, and so have equipment prices! Due to shortages prompted by pandemic-related supply chain issues, increased global demand, labor disruptions, and extreme weather, we continue to see an increase in construction costs. Here’s an updated look at building materials prices. According to the latest Producer Price Index […]
Category Archives: Construction & Cost Dynamics
Developers | Cheaper construction costs ahead!?
Rapidly rising interest rates and increasing construction costs have decreased builder confidence. With construction costs at an all-time high, you may be thinking it’s not the right time to move forward with new development deals, but that may be a mistake! Great opportunities may lay ahead for developers who are ready. Read on to find out why. […]
Apartment Developers: Higher Efficiency = Higher ROI
For several years, apartments have been shrinking in size, partly because smaller units are more profitable for property owners. However, as the number of US renters increases, so does the demand for larger units. How can you meet the market need while remaining profitable? Read on! The building efficiency ratio represents the share of net rentable […]
Construction Cost Insights: Construction Delays
Nearly 90% of GCs are experiencing project delays! Supply chain problems, labor shortages, and permitting delays make it nearly impossible to build. In addition, building materials prices continue to soar. Photo created by bearfotos – www.freepik.com Many construction materials and commodities are seeing double digit year-over-year cost increases with steel and diesel experiencing some of the […]
Developers | Lumber Prices Are Soaring—What Can I Do?
With building materials costs soaring at a record pace, builders, contractors, and developers are exploring alternative framing methods. Softwood lumber has an especially high price tag, and many are switching to cold-formed steel (CFS). Is it time to convert your project from wood to steel? Residence Inn Hotel-Clayton, MO Lumber Prices are Soaring—What Can I Do? The Producer […]
Podiums vs. Wraps | Which to choose?
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 […]
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. […]