Construction Costs Rise for Apartment Projects
November 14, 2017 | Bendix Anderson | National Real Estate Investor
The cost of construction is rising again. Trade disputes, hurricanes and rising demand from overseas are all pushing up the price of materials from gypsum wallboard to lumber and steel. And a shortage of labor is pushing construction workers’ wages higher.
“When we work with clients in their budgeting process, we are encouraging them to include a healthy contingency,” says Daryl McFarland, vice president of Sun Country Builders, a contracting company based in Vista, Calif.
So far, the price hikes have not been quite as bad as some feared earlier this year—or immediately after several major hurricanes struck late this summer. Trade disputes have not yet escalated out of control. Hurricane rebuilding projects often take years to start construction. But the cost increases right now are more than enough to stress the construction budgets of many affordable housing developers.
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