Volatile and high construction costs are a wildcard with current escalation costs of 10% to 15% on projects. Construction cost escalation, a significant driver of increasing development costs, will continue to hinder development affordability. With an average cost per affordable rental unit in California of $326,000, as reported in a 2018 GAO report, and unit costs as high as $700,000 to $865,000 in the high cost urban cores, there are not enough public sector resources to build many units. More efficient development schedules, innovative design and material solutions can limit the impact of construction cost escalation. However, the time to secure funding, funding driven construction requirements, labor challenges, design review boards requesting elaborate design, local regulation and NIMBYism are limiting the ability to reduce costs. Panelists will discuss how we can address these challenges, including:
- Cost and availability of labor
- Innovation in and cost of materials
- Labor intensive methods versus preassembling techniques
- Cost impacts associated with design guidelines and development standards
Date: Wednesday, April 17, 2019
Time: 2:00 pm to 3:30 pm
We'll also be exhibiting! Be sure to stop by our booth.
Location: Sacramento Convention Center
1400 J Street
Sacramento, CA 95814
