Volatility in Construction Materials Pricing Is Putting Strain on Multifamily DevelopersMarch 5, 2019 – Media Mention
Apartment developers continue to be stressed by the unpredictable cost of construction materials.
Overall, materials prices keep rising faster than inflation. But what’s worse is that prices for individual construction materials are unpredictable from month to month. The price of lumber and diesel fuel has fallen sharply, for now. But new policies from the U.S. government continue to jolt the markets, from possible sanctions on oil producing countries like Venezuela to government tariffs on imported steel.
Developers are struggling to protect themselves from rising costs. "Due to concerns about the cost of steel rising, which were in part due to the trade war with China, my client wanted to buy all of the steel for the project prior to commencing construction," says Steve Lurie, partner with LA-based Greenberg Glusker, a law firm based in Los Angeles whose clients include several developers.