• About
  • Contact
  • Testimonials
  • Newsletter
  • More
    • Demographics & Advertising Rates
    • Terms & Conditions
Wednesday, June 7, 2023
No Result
View All Result
California Business Journal
  • Front Page
  • Business
  • Finance
  • People
  • Featured
  • Opinion
  • Technology
  • Law
  • News
  • Food
  • Art & Culture
  • Human Interest
  • Education
  • Insurance
  • Real Estate
  • Health & Fitness
California Business Journal
Rising Construction Costs in 2022

Photo Credit: PYMNTS.com

Rising Construction Costs in 2022

by Karen Janowitz, California Business Journal
A A
Share on FacebookShare on Twitter

At the start of this year, economists from all over the world expected the housing market to crash due to the ongoing economic crisis unfolding from the pandemic. However, from what we have seen so far, things have been moving in the opposite direction.

Construction costs are expected to rise for the foreseeable future, even with conflicting reports of the current housing demand slowing down throughout the United States. Below we discuss what’s driving these costs.

Factors That Have Increased Home Project Costs

The cost of building a house has seen an unprecedented rise since before the pandemic. While many major outlets did expect an increase, none had an idea that it would be of this magnitude.

ADVERTISEMENT

Zillow projected that home prices would rise by 12% between April 2021 and 2022, whereas these prices saw a rise of over 20%. As of right now, some of the biggest factors that have contributed to this rise in prices in the housing market are supply chain issues, labor, and commodity costs.

Supply Chain Issues

Due to ongoing global political issues, wars, and COVID lockdowns, a lot of industries and markets have suffered from supply chain issues. These disruptions have led to dried-up inventories, which have contributed significantly to an increase in construction costs.

While contractors hope that inventories might soon be replenished, there are no signs of stability currently as these troubles are expected to continue throughout the year.

Labor

The shortage of labor has driven labor costs through the roof, causing delays and forcing companies to pay higher rates for skilled contractors.

“Given the national labor shortage we’re facing, we understand it’s more of a priority than ever to make sure our guys are compensated well for their hard work and loyalty,” according to Danny Kab from Build Method Construction, a Los Angeles residential building company. “We try to give them all of the resources they need to be happy while doing their job.”

High Commodity Costs

Last year, construction material costs saw an increase of almost 25%, and this year has been no different. Townsville builders suggest the above-mentioned supply chain disruptions, as well as increased transportation and tariff costs, have played a major role in the increase in material prices.

In 2021, copper prices were the highest they had been in almost a decade. Steel prices in the United States are almost 70% higher than in the rest of the world, which is a major reason for such high construction costs. Lumber prices have also played a role, as prices are still at much higher levels than pre-pandemic.

 

Tags: AngelesConstructioncontractorsDannyeconomistshomeLosLos AngelespricesresidentialriseRising Construction Costs in 2022supply chain
ADVERTISEMENT
Karen Janowitz, California Business Journal

Karen Janowitz, California Business Journal

Related Posts

How Satellites Have Made A Difference In Business
How Satellites Have Made A Difference In Business
The Importance of Photographic Documentation on Construction Sites
The Importance of Photographic Documentation on Construction Sites
contractor
Planning to Get a Contractor License? 7 Things You Should Consider First
ADVERTISEMENT

CBJ Newsletter

Facebook Twitter LinkedIn Instagram LinkedIn

Advertise With CBJ

Contact Rick@CalBizJournal.com

CBJ Rates and Demographics

ADVERTISEMENT
1REALTOUR-SAN DIEGO-WEB DESIGN
Facebook Twitter LinkedIn LinkedIn Instagram Youtube
C B J   LOGO  SVG-01
  • About
  • Contact California Business Journal
  • Testimonials
  • Demographics & Advertising Rates
  • Terms & Conditions

Categories

  • Art & Culture
  • Business
  • California Hotel Listings
  • Daily Updates
  • Editor's Choice
  • Education
  • Featured
  • Finance
  • Food & Dining
  • Health & Fitness
  • Human Interest
  • Insurance
  • Law
  • Lawyers
  • Marketing
  • Medical
  • News
  • Newsletter
  • Opinion
  • People
  • Popular
  • Real Estate
  • Social Media
  • Technology
  • Uncategorized

CBJ Partner Firebrand Media

Laguna Beach Independent Newspaper
 Laguna Beach City Guide
 Newport Beach Independent Newspaper
Newport Beach Country Club Magazine
  Montage Magazine
 Omni Escapes Hotel Magazine
 Bespoke Concierge New York
 Evans Hotels
 Laguna Beach Magazine
 On The Menu Laguna Beach
 Newport Beach Magazine
Coastal Real Estate Guide (NB,LB, CDM)
Monarch Beach Resort Magazine
 Pacific Coast Magazine (SoCal)
Sea Island Life Magazine
Salamander Hotel & Resorts Magazine
 View our entire portfolio

 

Most Viewed

  • More Truth About Temu: Is Temu A Chinese Company?

    The Truth About Temu: Where Is It From?

    0 shares
    Share 0 Tweet 0
  • Lawsuit Basics: How Much Does It Cost to Sue Someone?

    0 shares
    Share 0 Tweet 0
  • Investigation: Can TriumphFX Take Your Money?

    0 shares
    Share 0 Tweet 0
  • What to Do When an Online Casino Refuses to Pay Out Your Winnings

    0 shares
    Share 0 Tweet 0
  • The Impact of Covid: Racing to Buy Second Citizenships

    3 shares
    Share 0 Tweet 0
  • Top 5 Flavors On Elf Bar BC5000 Review

    0 shares
    Share 0 Tweet 0
  • NFL Paychecks: How Do NFL Players Get Paid?

    0 shares
    Share 0 Tweet 0
  • Temu’s New Shipping Policy Is A Smashing Hit For Shoppers All Over the Country

    0 shares
    Share 0 Tweet 0
  • 30 Best Temu Alternative Apps To Buy from Online

    2 shares
    Share 0 Tweet 0
  • Five Reasons Why The Government Does Not Like Bitcoin

    0 shares
    Share 0 Tweet 0

Latest Articles

Photo by cottonbro studio from Pexels

The Rise of Virtual Workspaces: Transforming B2B Operations

A Comprehensive Guide to BetOnline’s Payment Methods

4 Ways To Boost ENT Immunity

The Difference between Data Engineer and ETL Developer

Banking 101

Why This California Researcher is Using Financial Algorithms to Predict Extreme Weather Events

Courtesy: Pexels

The Evolution of Gambling: Exploring the Future of Crypto Betting and Technological Advancements

How to Get 1,000 YouTube Subscribers (for Free!)

Why Music Sounds Better Under the Influence of Cannabis?

How Affiliate Marketing Truly Works

California Business Journal | California Business News, California News Media, California business articles | Orange County, Los Angeles, San Diego, Inland Empire, Northern California, San Francisco | Huntington Beach CA 92649 | (949) 648-3815
ALL RIGHTS RESERVED BY CALIFORNIA BUSINESS JOURNAL.
Site Design by 1REALTOUR

No Result
View All Result
  • Front Page
  • Business
  • Finance
  • People
  • Featured
  • Opinion
  • Technology
  • Law
  • News
  • Food
  • Art & Culture
  • Human Interest
  • Education
  • Insurance
  • Real Estate
  • Health & Fitness

California Business Journal | California Business News, California News Media, California business articles | Orange County, Los Angeles, San Diego, Inland Empire, Northern California, San Francisco | Huntington Beach CA 92649 | (949) 648-3815
ALL RIGHTS RESERVED BY CALIFORNIA BUSINESS JOURNAL.
Site Design by 1REALTOUR