What does everyone thinks about construction cost increases?

[Iliya Muzychuk]

As an architect I start seeing projects stall since developers didn’t expected to fund the huge price increases of commodities due to shortages inflation and covid. 

What do you think is going to happen in the next 18-24 months period, how will the market act, and where would be best to invest under these circumstances? 

Would love yo hear your thoughts!

[Nik Moushon]

Originally posted by @Iliya Muzychuk:

As an architect I start seeing projects stall since developers didn’t expected to fund the huge price increases of commodities due to shortages inflation and covid. 

What do you think is going to happen in the next 18-24 months period, how will the market act, and where would be best to invest under these circumstances? 

Would love yo hear your thoughts!

 Its hard enough to predict 1 month out let alone 24 months. Lumber prices alone have gone up 100% in just the last 3-4 months. 300% in a year. Everything is still too volatile to really try to predict out that far. Even in a normal market you are lucky to predict 12 months out. 

This new administration had too many possible "solutions" they are proposing that could either help or seriously hurt the economy in the next 6 months. It all depends on what comes out the end of the cluster F that is congress. And no one know whats going to happen. And then there are all this issues that everyone in washington just keep kicking down the road...so when those problems finally explode...they could up end anything and everything. 

As for the construction industry, continue to see extreme problems in material pricing and delays as well as labor shortages for easily the next 6-12 months. Unless the feds start taking drastic measures, boarder line illegal, then just expect the current status quo to continue. My development project has had the substantial completion date pushed back by 2 months because subs arent showing up. That might not seem a lot but its a 33% increase in the construction time at $1000/wk loss on my end. 

If you really want to try and get some, somewhat, sound predictions go see what all the REI gurus are saying. Ken McElroy has to say on his Youtube page. Then go listen to the Real Estate Guys, then go listen too.... etc etc. You'll get a slightly different perspective in each one. They are all sound guesses with number and data to back them up but at the end of the day...its just their educated guess. Anything could happen. But what you'll notice the most is that they usually are only forecasting about 6m out, maybe 12. Never 24. Things just change too fast to do something like that.