Pricing Increases Stirring Up Storm Clouds for Sunny San Diego’s Construction Market?

This report in the San Diego Union-Tribune says some of the pricing issues with steel and aluminum discussed in EW’s September cover story could have an impact on construction projects in San Diego’s sizzling construction market.  While the article said “most developers and analysts are hesitant to say material costs will slow down the building boom,” it did quote James Weber, director of cost estimating for Xpera Group, the San Diego based construction forensics company, as saying that builders should be more cautious in this increase of increased construction costs.

“Say your project is underway and everything goes up 25 percent, you’ve blown through your steel pricing,” Weber said in the San Diego Union-Tribune article. “Then your project could be at risk for future funding or loan releases, or even being built if you didn’t factor that in.”