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Condos See Construction Cost Pinch

WASHINGTON, DC-Area experts consider whether construction costs are colliding with a softening condo market. Condo projects--particularly conversions--are vulnerable to price increases given the amount of steel, concrete and oil-based products that are used.

By Erika Morphy | Updated on May 04, 2006

(To read more on the multifamily market, click here.)

WASHINGTON, DC—The peak building period typically starts in May. But as the cost of construction materials continues its sharp ascent, the Washington market is bracing for an impact. That’s especially true as signs emerge that certain segments are already starting to slow.

Already the DC condo market is showing signs, if not of distress, then of declining growth, as prices have been flat since August 2005. “If you look at same store pricing, you can see that we are experiencing the same [condo] prices now as we did last summer,” says Greg Leisch, chief executive of Delta Associates, a national consulting firm in Alexandria, VA.

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