Costs on the Rise for Apartment Construction
The cost of materials for apartment construction increased by 3.6% over the year that ended in September 2017. The information comes from the Bureau of Labor Statistics’ producer price income, and notes that the price of materials ranging from gypsum wallboard, to lumber, has hiked the prices.
A combination of trade disputes, rising demand from overseas and the struggle to recover from the summer’s hurricane season have been pushing materials prices, with the price of wood a big worry for developers. The price for lumber and plywood increased by 6.8%, year over year.
Also being pushed higher: Construction workers’ wages, as a shortage of labor continues. Contractors are being forced to make do with smaller work crews of inexperienced workers. This has resulted in project completion delays. Though a surge in rental apartment construction is partly the reason for the shortage, experts also point out that tighter immigration rules are also a factor.
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