Rise in construction costs to slow
March 7th, 2008, 11:01 am · Post a Comment · posted by mistywilliams
The past several years have marked steep increases in construction material costs, but that rapid rise is expected to taper in 2008.
Construction costs jumped 7.5 percent in the Valley last year, according to a study by construction and property consulting firm Rider Levett Bucknall.
Other metropolitan areas were hit harder. Costs in markets, such as Las Vegas, San Francisco, Los Angeles and Seattle, rose from 11 percent to 13 percent, the report shows.
Costs will continue to rise but at a slower pace, a result of price drops in residential construction materials because of the housing downswing, the study states. The Valley is expected to see construction costs rise roughly 4 percent in 2008, however, because of ongoing commercial development.
