ABC Chief Economist Anirban Basu pointed to several reasons for the escalation, including a rebounding economy, ongoing supply chain disruptions and limited productive capacity.
“Many economists insist that the current situation is merely temporary; still, today’s input price increases can meaningfully affect contractor fortunes by trimming margins and delaying the onset of projects,” he said in a press statement.
Low interest rates mean that more money is being invested in real estate, which often translates into construction projects, he said. However, that liquidity also serves to help push prices higher.
