Tariffs Fuel Already High Construction Costs

Construction costs are increasing as much as 3% per year, and steel and lumber tariffs are contributing to the increased costs.

Andrew Starrels

Tariffs are fueling already high construction costs. Raw materials tariffs, which include lumber and steel, are adding to construction costs, which are up 2.5% to 3% annually. We sat down with Andy Starrels, a member of Holland & Knight’s West Coast Land Use and Environment Group, to talk about the impact the tariffs have had on both residential and commercial construction costs, including the long-term impacts, the assets classes most impacted and advice for developers facing increasing costs.

GlobeSt.com: How have the current tariffs impacted Los Angeles construction activity thus far?

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Kelsi Maree Borland

Kelsi Maree Borland is a freelance journalist and magazine writer based in Los Angeles, California. For more than 5 years, she has extensively reported on the commercial real estate industry, covering major deals across all commercial asset classes, investment strategy and capital markets trends, market commentary, economic trends and new technologies disrupting and revolutionizing the industry. Her work appears daily on GlobeSt.com and regularly in Real Estate Forum Magazine. As a magazine writer, she covers lifestyle and travel trends. Her work has appeared in Angeleno, Los Angeles Magazine, Travel and Leisure and more.

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