Construction Cost Estimates
- alejandro46
- Alameda Tower
- Posts: 1357
- Joined: Fri Feb 02, 2018 11:24 pm
- Location: King in the North(Land)
Re: Construction Cost Estimates
I discussed w my contractor today. Said KCMO is so crazy backed up with housing permits. 6 month wait. He stockpiled a lot of lumber for our project and his house he’s building. Ended up getting 1000 sqft one bd one br finished for 30k, cabinets and tile extra. Pretty good deal compared to other bids being 20k+.
- chaglang
- Bryant Building
- Posts: 4132
- Joined: Wed Jan 04, 2012 12:44 pm
Re: Construction Cost Estimates
Back in early March, over-the-counter commercial permits were able to be scheduled 3-4 days out. Now it' in the 14-17 day range.
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- Mark Twain Tower
- Posts: 9862
- Joined: Tue Jul 17, 2012 7:54 am
Re: Construction Cost Estimates
Lumber prices dropped a ton in the past month. I took a photo of 2x4s and 2x3s (8 foot) so I could track the price (wasn't buying then)
Home Depot 2x4x8
July 10- $7.77
Website today: $3.98
So it's down almost by half in a month
Home Depot 2x4x8
July 10- $7.77
Website today: $3.98
So it's down almost by half in a month
- FangKC
- City Hall
- Posts: 18267
- Joined: Sat Jul 26, 2003 10:02 pm
- Location: Old Northeast -- Indian Mound
Re: Construction Cost Estimates
Good to see. I noticed a board on my deck is giving under my foot last week. I need to replace the entire deck floor, but that one reminded me it needs to be done soon. I was hoping prices would come down, but expected it would take a lot longer.
- FangKC
- City Hall
- Posts: 18267
- Joined: Sat Jul 26, 2003 10:02 pm
- Location: Old Northeast -- Indian Mound
Re: Construction Cost Estimates
Construction-cost spikes may prompt some developers to consider delaying, canceling projects
https://www.bizjournals.com/kansascity/ ... 2021-10-15...
A recent report by Jones Lang Lasalle Inc. (NYSE: JLL) found, through August, average final construction costs for a commercial project had increased 4.5%. Total cost growth by year-end is likely to surpass 6% and, in 2022, cost increases between 4% to 7% are projected.
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But once the pandemic backlog catches up, and if construction costs continue to escalate at, say, double-digit percentage increases, projects could start to not pencil out.
"That may begin to become more of an issue going into next year," D'Esposito said.
One of the biggest challenges that has faced general contractors and, as a result, developers and tenants has been trying to predict which material is facing a shortage or pricing issue at any given time. For months in the first half of 2021, lumber was seeing price surges. More recently, pricing has moderated for lumber, but steel has become a bigger headache.
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Lisa DeNight, national industrial research director at Newmark Group Inc. (NASDAQ: NMRK), said construction costs and shortages are probably the most critical issue facing industrial real estate developers right now. She said, anecdotally, she's heard of some developers canceling or significantly delaying planned projects because they cannot guarantee timing.
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