Nevertheless , some of the inflationary pressure contractors and others are experiencing may not be over soon , he said , and inflation and interest rates may not be as low during the decade ahead as they were during the decade leading up to the pandemic .
“ There are some things that have changed during the pandemic and will not shift back ,” said Basu . “ For instance , money supply around the world has expanded significantly . Governments have been running large deficits .”
Commercial and residential builders have struggled with the higher materials prices since this time last year . The National Association of Home Builders reported that lumber costs are adding an average of $ 35,872 to new single family home prices .
Those prices have also added $ 12,966 to the value of an average new multifamily home . As those are typically built to rent , that in turn is adding $ 119 a month in rent to new apartments .
Despite the skyrocketing materials prices , contractors expect sales to rise over the next six months , according to ABC ’ s Construction Confidence Index , also released on Tuesday . This means project owners who delayed the onset of construction for a few months in order to secure lower bids may come to regret that decision , Basu said .
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JUNE 2021 • DITCHMEN 27