Overview:

• Challenges in the building and construction trade: rising costs, permits, and labor.
• Issues with long approval times and carrying costs that make projects less viable.
• The impact of market conditions on new developments and remodels.

Key Discussion Points:

• Expensive Project Costs:
  • High costs for clients and contractors, including permits, materials, and labor.
  • Carrying costs becoming a major issue for new construction due to long approval times.
• Permit Delays & Impact:
  • The delay in obtaining permits can lead to increased material costs and interest rates, affecting project viability.
• Real Estate Market Outlook:
  • Housing prices expected to remain high for years, according to Fortune.
  • Even though interest rates are high, housing prices are unlikely to come down.
• Interest Rates & Mortgage Costs:
  • Mortgages becoming more expensive as rates increase and more borrowers become ineligible for standard rates.
  • A slight pause in rate hikes may end by mid-2024, with another increase expected to balance inflation and bond returns.
• Tighter Construction & Real Estate Markets:
  • Moody’s downgrade of US debt will likely push rates higher, tightening the construction and real estate market.

Call to Action:

• Share your opinion in the comments about how these market conditions are affecting you or your projects.