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Construction prices are low, at levels not seen in a long, long time, with demand down.  But recent indications are that construction activity is picking up, and it doesn’t take long for material suppliers to pick up on this.  Note the following:

• Lumber prices are up more than 30% since January 1st.  And increased costs on a project recently priced by over $200,000.  Fortunately other prices were were down to offset this.
• Drywall material cost increased 20% May 10th, the second 20% increase this year.
• Roofing manufacturers increased their prices from 5 – 7% in February, and have another increase effective May 1.

Given how much costs have reduced in the past year or so, it is feared that this is just the start, as things pick up.  It’s still a great time to build from a cost standpoint, and new developments will come on line as the economy is hitting full speed, a good thing.  Delays in starts of projects could be costly to clients, and it will take creativity and hard work to hopefully control these costs.