This gives us a little pause as we are looking at starting Riverside Commons Apartments in Plymouth & LaPaz… And unfortunately, this chart only goes back 12 months and the increases started well before that.
Most of our suppliers are experiencing issues with holding prices and in obtaining materials. This is a double edged sword. We are looking at extending the construction timeline to account for any material delays, but that also exposes us to additional concerns regarding material cost increases. In general, our suppliers anticipate prices coming down at least some over the next year, but they were also telling us that would happen after the first of the year when discussing it last Fall. Fortunately we’re not using them for their crystal balls…
We have been approached about partnering in a Market Rate housing project that would run concurrent to Riverside Commons Apartments, but with some of the above input numbers, the rents won’t cover the carry costs. This is frustrating, because the housing need is real, but the metrics aren’t working.
This all brings to mind the falsely attributed Chinese Curse, “May you live in Interesting Times…”.