On today’s show we are looking at an outlook for inflation of construction prices and how this is going to play out over the next three years.
There is no question that construction prices have come down in the past 6 months and continue to fall. This has been driven by the fall in lumber prices. Labor prices have stabilized and many subcontractors who have been forecasting no capacity for the next 36 months are coming back on one knee asking for work.
The pricing for construction sub trades varies widely. We have seen prices for HVAC increase during the pandemic. We’ve seen paint and steel and copper and fasteners all go up in price. For the time being, these prices have stabilized.
The question then becomes what will happen in the coming years? Can we forecast what will happen next, and what can we do about it?
I believe that the answer is yes, we can predict what is going to happen.
Host: Victor Menasce