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Rising construction costs are the biggest challenge for all developers, but for affordable developers, it can be a crippling one. In fact, the increased construction costs are one of an amalgam of reasons that the affordable housing supply is shrinking. However, there are solutions. Partnering with an established affordable builder is one of the essential ways that developers get costs under control, along with pre-construction planning to stay on schedule and work out potential cost-increasing issues before they happen.

“Affordable housing projects face several inherent challenges to completion, especially in California,” Richard Lara, president and CEO of RAAM Construction, tells GlobeSt.com. “Among these challenges are rising construction costs and scarcity of quality labor, which, while they don’t exclusively affect affordable development, these challenges do hit the affordable sector especially hard.”

Kelsi Maree Borland

Kelsi Maree Borland is a freelance writer and editor living in Los Angeles whose work has appeared in such publications as Travel + Leisure, Angeleno and Los Angeles Magazine.

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