Construction Costs on The Rise Again
Commercial Construction, Trends May 20th, 2008Over the past several weeks, construction prices have climbed about 10% as the combination of a weak dollar and high crude oil prices filter their way through the economy. The weak dollar and global demand has caused base materials products to increase thereby causing an upswing in building material prices. High fuel prices further compound the problem by naturally increasing the cost to transport the goods.
Tags: Commercial Construction, Construction Prices
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May 20th, 2008 at 9:16 am
[...] by Jordan Crouch on May 20, 2008 I don’t have any hard data to back it up, but according the Square Feet blog, construction costs are on the rise. It makes sense. A weak dollar means buying [...]
May 20th, 2008 at 9:18 am
Another thing that is hurting new construction is the rising cost of debt. As rates rise, the debt service is lowering the allowable loan amount. With costs rising and loan sizes shrinking, developers are being asked to bring more equity to the table.
August 14th, 2008 at 10:49 am
do you think this is justifiable?