Quote:
Originally Posted by quasi
The thing with construction is you bid projects based on the current market, sometimes it's 2 years before your on site depending on what your responsible for. A lot can change in 2 years, material and labour can cost you way more then anticipated.
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I was referring to construction of detached housing which don't have the same lag time.
Quote:
I estimate commercial construction projects for a living, we've had a material increase every 6 months for the last year and a half 8-10% each time on all my materials. Labour is asking for more money now then they were 2 years ago by almost 25%. From my recollection 4 years ago we went over a year without an increase, it's a guessing game.
Historical prices don't really mean anything in the short term, you can only look at the fluctuation in costs from when a project was bid to when it's complete.
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Except currently prices of commodities are not historical highs or even near historical highs. Cost of forestry products are lower now (data from 2015) than in early 2000s and mid-late 1990s.
The year over year fluctuations for forestry products are
-3%, -5%, -6%, -2%, -19%, 26%, 3%, 2%, 10%, 2%, -13% from 2005-2015.
Yet I don't think construction cost has decreased anything during that span.
Also want to add the price index of apartment building construction that Statistic Canada publishes:
2007 Q1 131.2
2007 Q2 135.4
2007 Q3 137.3
2007 Q4 138.4
2008 Q1 141.5
2008 Q2 146.9
2008 Q3 148.8
2008 Q4 145.0
2009 Q1 138.2
2009 Q2 136.8
2009 Q3 134.8
2009 Q4 134.6
2010 Q1 134.3
2010 Q2 136.0
2010 Q3 136.2
2010 Q4 136.8
2011 Q1 138.5
2011 Q2 140.0
2011 Q3 141.4
2011 Q4 141.9
2012 Q1 143.1
2012 Q2 143.9
2012 Q3 144.1
2012 Q4 144.6
2013 Q1 144.5
2013 Q2 145.7
2013 Q3 146.0
2013 Q4 146.0
2014 Q1 146.7
2014 Q2 147.5
2014 Q3 147.9
2014 Q4 148.1
2015 Q1 148.9
2015 Q2 149.6
2015 Q3 149.4
2015 Q4 149.6
2016 Q1 149.7
I don't see the a huge price increase