Developers have weathered the rising costs of construction materials and labor for a while, but now are feeling the pinch as contractors are increasingly passing on the higher costs.
The costs of construction materials, including lumber and steel, have been volatile, with some steep spikes along the way during the past two years. Rising prices spread like wildfire, as the pandemic shut down factories and snarled deliveries for a long list of items.
But many apartment investors were still able to find relatively low prices from contractors. These contractors increased the prices they asked for in their bids only slightly, even though their bills were much higher. Read On