According to AGC, by the end of 2006 and the beginning of 2007, construction costs had slowed to a 3% growth rate. By the end of 2007, and throughout 2008, they will be up to 6%.
These numbers were generated on a national basis, Kenneth Simonson, chief economist of the association tells GlobeSt.com. "Prices tend to up in line between the regions so there is little variation from that perspective." However, he adds, in the DC area, the absolute level of prices may be higher because of the region's small manufacturing base, which in turn generates higher than average transportation costs.
It is not welcome news by developers and other builders, obviously. Simonson says local government agencies and school boards in particular are disappointed about the future impact these price increases will have on their budgets.
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