Construction and market downturn? Whats the relationship?

[Jay Johal]

I am looking to turn my SFR in San Diego into a Triplex. This has been some planning in the stages for the past several months and I am looking to possibly break ground in late September/October depending on permit approval. And from my readings, during economic downturns/recessions, we know that the rate of new projects or new constructions decreases. Majority of us know that a recession is coming, so my question is, how are construction costs affected? (IE labor, building materials, construction loans, etc). I know construction overall decreases, but do costs drop due to lack of work (cheaper labor)? or do they increase?

If it makes sense to hold on my construction, then I may wait an additional 6 months to a year to start.