X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.

The supply-chain interruptions related to the COVID-19 pandemic have put negative pressure on an already challenged construction market. Rising construction costs have been a major challenge for developers, but now some are reporting that contractors are so busy that they are declining to bid on new projects.

Michael Boujoulian, managing director of Alliance Residential, is breaking ground on a 314-unit apartment building in Waltham, Massachusetts, and is dealing head on with these challenges. “We have seen hard to believe year-over-year price escalations,” he tells GlobeSt.com. “We are seeing a 20% increase in construction costs. We are even having some contractors decline to bid because they are busy enough and they aren’t looking to grow. The depth that we rely on in those subcontractor markets has caught up with us. That of course hurts pricing when there is less competition.”

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

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.

More from this author

 

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt
Live Chat

Copyright © 2021 ALM Media Properties, LLC. All Rights Reserved.