Construction Costs Rise 5% YOY
I’ve had a few clients surprised at the high cost of buying at new condo projects like Insignia and Luma.
One of the contributing factors of those high costs is the cost of construction which has been steadily raising as demand for labor and materials has increased.
The PSBJ recently reported on this, Construction costs in Seattle forecast to climb even higher next year:
The cost to build office buildings, apartment high-rises and other big commercial projects in the Puget Sound region is 5 percent higher than a year ago and will increase as much as 6 percent more in the next 12 months.
In fact, rising construction costs was one of the reasons that Salt Ballard which was supposed to be condos is now apartments.