RealtorMag
The costs of raw materials used in construction — such as asphalt, iron, steel, and diesel — have fallen the past year and a half, but builders are still not seeing much of a savings. That’s because the costs of labor are soaring due to worker shortages in the construction field, according to new research from CBRE Inc., a real estate brokerage firm.
In the past year, prices for asphalt have plummeted more than 42 percent. The prices of iron and steel have fallen by nearly 15 percent. That alone should make building costs decline but that’s not the case, builders are finding.
Average construction costs have risen by 1.8 percent in that time, according to the report.
