Hyperinflation of Construction Costs

[Dan Powers]

With the absurd increase in the price of building materials across the board, specifically lumber increasing in price nearly 200% from pre-pandemic prices, what build costs are investors or developers typically accounting for in their calculations?

What prices for lumber are you encountering in the Philly market, and how much of an increase have you allocated in your rehab budgets?

Very curious what investors and developers answer because the current market is changing by the week and the rehab budgets I've seen from a month ago are often not accurate for the current market prices.