“Construction costs increased 30% again this year. A fact that is both astounding and unbelievable to developers. While recent tariffs have put pressure on raw materials costs, a shortage in construction labor is the chief driver of the rapid increase in construction prices”
Also discussed are…
- What effect tariffs are having. Many of the tariffs, especially the earliest ones affecting appliances and steel tend to impact homeowners more than many. This is one significant reason for the inflation in repair costs
- Winner take all. Because so many industries are consolidating and becoming behemoths, it crowds out mom and pop investors and smaller businesses making it harder for us to secure quality vendors and contractors and this means we have to pay more when we do find great help
- Inflation in the rental industry is alive and well. You’ve probably heard that the Fed is trying everything they can to boost inflation. However in our business inflation has been hot for almost a decade! Rates are rising, the cost of repairs is rising, HVAC’s require new standards, and vendors are charging much much more these days