An exponential increase in the cost of building new housing in San Jose during the past year has made it unlikely that new market rate and affordable projects will break ground in the near future, according to a new report commissioned by the city.

According to the study, the cost of building a single unit of affordable housing has surged over the past year in San Jose from $758K to $939K, a 24% jump and a three-fold increase compared to the average annual increases over the past decade and a half, the San Jose Mercury News reported.

Building costs in the San Jose Metro are 26% higher than in San Francisco and Alameda County, the report said, attributing the surge to a shortage in the labor market and differences in wage structures, the report said.