« prev   random   next »

1
0

Bay Area construction costs are rising about 1 percent to 1.5 percent each month

By Patrick following x   2018 Apr 29, 2:50pm 508 views   7 comments   watch   sfw   quote     share    


https://www.mercurynews.com/2018/04/27/construction-costs-could-hamper-bay-area-residential-towers/

“We have more than 6,000 units that are fully entitled and ready to be built,” San Jose Mayor Sam Liccardo told this news organization following the study session. “But developers can’t get shovels in the ground because the development costs are scaring away the financing.” ...

“Construction costs have increased dramatically, especially in the last 18 months,” Don Peterson, senior managing director Northern California for Mill Creek Residential Trust, said during a presentation to the council.

According to Hudacek, construction costs are rising about 1 percent to 1.5 percent each month — which is far above the general rate of inflation, as measured by the consumer price index. Construction expenditures represent 60 percent to 75 percent of the total cost of developing a high-density residential project, Hudacek estimated.
1   Strategist   ignore (1)   2018 Apr 29, 5:57pm   ↑ like (0)   ↓ dislike (0)   quote        

Patrick says
“We have more than 6,000 units that are fully entitled and ready to be built,” San Jose Mayor Sam Liccardo told this news organization following the study session. “But developers can’t get shovels in the ground because the development costs are scaring away the financing.” .


Sounds like BS. With the super heavy demand and record home prices, lenders are not gonna be scared. It's just NIMBYism.
2   TrumpingTits   ignore (0)   2018 Apr 29, 6:48pm   ↑ like (1)   ↓ dislike (0)   quote        

Time to bring in the robots. No, seriously. Right now houses can be 'printed' for $10k - $20k. The final finishing work would still be done by humans.

Would have to require a complete overhaul in how construction inspectors work and when. You know, they would actually have to join the 21st century.
3   BayArea   ignore (0)   2018 Apr 29, 6:51pm   ↑ like (1)   ↓ dislike (0)   quote        

What’s driving a 1.5% monthly construction cost increase?
4   TrumpingTits   ignore (0)   2018 Apr 29, 7:08pm   ↑ like (0)   ↓ dislike (0)   quote        

BayArea says
What’s driving a 1.5% monthly construction cost increase?


Labor shortages & permitting & delays. A lot of electricians and plumbers are retiring and the younger ones who barely have their journeyman card are leaving the state so they could afford a house too.
5   Strategist   ignore (1)   2018 Apr 29, 7:24pm   ↑ like (0)   ↓ dislike (0)   quote        

BayArea says
What’s driving a 1.5% monthly construction cost increase?


The permit costs? You know, the pensions of bureaucrats gets priority above all else.
6   Patrick   ignore (0)   2018 Apr 29, 7:32pm   ↑ like (0)   ↓ dislike (0)   quote        

WarrenTheApe says
BayArea says
What’s driving a 1.5% monthly construction cost increase?


Labor shortages & permitting & delays. A lot of electricians and plumbers are retiring and the younger ones who barely have their journeyman card are leaving the state so they could afford a house too.


Skilled trades are definitely experiencing a severe shortage. I had a previous post about that:

https://patrick.net/post/1315543/2018-04-26-university-degrees-get-consistently-less-valuable-especially-compared-to-high-paying-manual-trade-jobs
7   Feux Follets   ignore (0)   2018 Jun 9, 1:36am   ↑ like (0)   ↓ dislike (0)   quote        

Highest Paid Occupations in Construction

The highest paid occupation in construction is Chief Executive Officers (CEO) with half of CEOs making over $167,000 per year. Petroleum engineers are close behind with the median wages of $159,330 and the top 25 percent on the pay scale earning over $194,300 annually. Lawyers and flight engineers are next on the list with the median wages of $134,010 and $127,130, respectively. The next ten highest paid trades in construction are various managers. Half of architectural and engineering managers make over $124,030 and the top quartile earn over $159,930.



Among construction trades, elevator installers top the median wages list with half of them earning over $79,000 a year, and the top 25% making at least $98,890. The median wages for rotary drill operators is close to $70,000, with the top quartile of the pay scale earning over $77,100 annually. Boilermakers are third highest paid construction craft. Half of these craftsmen working in construction earn over $65,380, and the highest paid 25% bring in over $78,150.

In general, construction trades that require more years of formal education, specialized training or licensing tend to offer higher annual wages. The median wages of construction and building inspectors are $58,300 and the wages in the top quartile of the pay scale exceed $77,930. Half of electricians and plumbers in construction earn over $52,000, with the top quartile making over $70,000.

Carpenters are one of the most prevalent construction trades in the industry. The trade requires less formal education. Nevertheless, the median wages of carpenters exceed the national median. Half of carpenters working in construction earn over $45,370, and the highest paid 25% earn at least $60,470 annually.



http://eyeonhousing.org/2018/06/highest-paid-occupations-in-construction/




The Housing Trap
You're being set up to spend your life paying off a debt you don't need to take on, for a house that costs far more than it should. The conspirators are all around you, smiling to lure you in, carefully choosing their words and watching your reactions as they push your buttons, anxiously waiting for the moment when you sign the papers that will trap you and guarantee their payoff. Don't be just another victim of the housing market. Use this book to defend your freedom and defeat their schemes. You can win the game, but first you have to learn how to play it.
115 pages, $12.50

Kindle version available


about   best comments   contact   one year ago   suggestions