Rising Costs in Construction: What Builders Need to Know
Download MP3Overview:
- Challenges in the building and construction trade: rising costs, permits, and labor.
- Issues with long approval times and carrying costs that make projects less viable.
- The impact of market conditions on new developments and remodels.
Key Discussion Points:
- Expensive Project Costs:
- High costs for clients and contractors, including permits, materials, and labor.
- Carrying costs becoming a major issue for new construction due to long approval times.
- Permit Delays & Impact:
- The delay in obtaining permits can lead to increased material costs and interest rates, affecting project viability.
- Real Estate Market Outlook:
- Housing prices expected to remain high for years, according to Fortune.
- Even though interest rates are high, housing prices are unlikely to come down.
- Interest Rates & Mortgage Costs:
- Mortgages becoming more expensive as rates increase and more borrowers become ineligible for standard rates.
- A slight pause in rate hikes may end by mid-2024, with another increase expected to balance inflation and bond returns.
- Tighter Construction & Real Estate Markets:
- Moody’s downgrade of US debt will likely push rates higher, tightening the construction and real estate market.
Call to Action:
- Share your opinion in the comments about how these market conditions are affecting you or your projects.
