NC State Ag Economist Dr. Mike Walden – “Why are Construction Costs Headed Up?”

 

Mary:  I’m Mary Walden, with economist MW, welcoming you to the economic perspective.   Today’s program asks why construction costs are headed up.  Mike, anyone who is building a home or structure or doing some remodeling today seem to have a common complaint – the cost is rising fast.  What’s behind these rising expenses of building?

Mike:  Summary Answer

  1. first, lumber supplies from NW have been impeded due to mill problems
  2. second, tariffs imposed on Canadian lumber in a trade dispute
  3. third, shortages of construction workers due to people leaving the industry

during the Great Recession, and fewer young people going into the

construction trades for a career

  1. and now, fourth, Hurricanes Harvey and Ira will cause demand for both

construction materials and workers to skyrocket

  1. so get ready for even higher prices to build
  2. I’ MW

Mary:  And I’m Mary Walden for N C State Extension


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