BNi Building News Construction Costs September October 2023
Posted: September 1, 2023 | Cost Trends
Source: US Department of Labor, Producer Price Index
The housing market is starting to make a recovery; not a strong one, but it’s a recovery nevertheless. Housing priced below $400,000 is selling and builders in appropriate markets are building. Mortgage rates are high, but buyers have factored this in and are still buying. In the commercial sector things are flat, but with strong growth, in lodging, educational, and manufacturing.
The infrastructure program is working and the public market is up 12-15%. Contractors still report a backlog, but most materials are available. There is less talk of a recession, and it looks like we may get that “soft landing” so often mentioned by economists.
Some material prices are up and some are down, so watching the markets is a must. At the time of publication, oil is on the move. Currently it’s in the low eighties where two months ago it was in the $70 dollar range. Something to watch. Inflation is moderating, but some materials (e.g. cement-based products) are on a tear and up 25%. We must continue to watch prices closely since recent moves are in both direction.
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