Watch: The rising cost of apartment building: it’s more than the labor shortage
Starts in apartment building are anticipated to drop 10% this year, though the cause of the stall isn’t just the ongoing labor shortage. Price increases are being attributed to regulatory challenges as well as the increasing complexity of constructing new apartment buildings. The price of materials is also beginning to climb, with soft lumber leaping 15% and OSB soaring 30% in the past year. Though amenities are driving competition, analysts suggest streamlining and simplifying to keep costs manageable. Is reducing amenities and increasing standardization worth cutting costs?