Several elements drove the cost of construction and building materials much higher during the Covid-19 pandemic. With more people at home, do-it-yourself (DIY) and home-based projects increased, causing a shortage of wood and other construction supplies. When demand for numerous products and materials was increasing rapidly, these material shortages were coupled with a scarcity of skilled labor and supply chains for many items and commodities.
With this in mind, it’s no surprise that spending on construction rose by an estimated 5% to 8% in 2021. Many of the materials utilized in apartment construction, such as concrete, flat glass, and steel products, are vulnerable to volatile prices. Steel costs have increased by more than 123% in the last year. While this might lead to adjustments in material and type of apartment buildings built, the housing market is expected to remain robust in 2022 due on a continuing housing shortage. Apartment builders may be anxious to start new projects in order to keep up with demand. In light of this and the market volatility, developers could wish to secure supplies and prices for future buildings before they rise once more.