How are you dealing with increased costs to build?

[Mayer M.]

Hey!

So how is everyone handling the increased development costs, particularly the dramatic increase in lumber prices?

I have started to see people put projects on hold hoping that material costs come down, but will they? And if so, will it be enough to make a dent?

Personally, I believe lumber costs will continue to rise especially once inflation begins to set in.

I am slated to begin a new construction multi family project and the lumber costs are about $200k more than they would’ve been a year ago. The way I see it is since everything is already lined up and ready to go there’s no sense in pausing with the hope I can build for cheaper in a year.

What are your thoughts?