Skyrocketing Building Costs , Could Stall Residential and , Commercial Development.
'Newsweek' reports that homebuilding costs in San Jose,
California, have reached record highs, reflecting
a more widespread problem in the United States.
According to a new report, builders in
San Jose are facing high interest rates amid
skyrocketing costs for both materials and labor.
According to a new report, builders in
San Jose are facing high interest rates amid
skyrocketing costs for both materials and labor.
In San Jose, the cost of building one unit of
affordable housing jumped up 24% in the past
year, climbing from $757,900 to $938,700.
Adrian Pedraza, a real estate broker and owner
of The California Homebuyer, said that
San Jose's issues are the result of scarce land,
high costs and "bureaucratic roadblocks." .
Adrian Pedraza, a real estate broker and owner
of The California Homebuyer, said that
San Jose's issues are the result of scarce land,
high costs and "bureaucratic roadblocks." .
It's become a huge challenge to
build affordable housing there and
in similar tech hubs. It's a perfect
storm for astronomical pricing, Adrian Pedraza, real estate broker and owner of
The California Homebuyer, via 'Newsweek'.
It's become a huge challenge to
build affordable housing there and
in similar tech hubs. It's a perfect
storm for astronomical pricing, Adrian Pedraza, real estate broker and owner of
The California Homebuyer, via 'Newsweek'.
'Newsweek' reports that the situation
in San Jose mirrors issues faced
by homebuilders across the U.S.
According to real estate consultant John Andrews,
California and the Southwest have seen the largest
price hikes due to unique environmental factors.
Insurance for construction is more
costly now, especially in states like
CA that have experiences a
disproportionate number of
natural disasters in recent
years, especially wildfires, John Andrews, commercial real estate consultant,
via 'Newsweek'.
Insurance for construction is more
costly now, especially in states like
CA that have experiences a
disproportionate number of
natural disasters in recent
years, especially wildfires, John Andrews, commercial real estate consultant,
via 'Newsweek'.
Experts have expressed concerns that high
building costs will lead to a loss of housing
and commercial development in the city.
When costs are too high to justify
potential returns, projects will
be shelved. This could lead
to a slowdown in residential
construction when the long-term
trend suggests that the
market needs the opposite, Danielle Hale, Realtor.com chief economist, via 'Newsweek'