Affordable housing is suffering from the effects of the economy and high construction costs, according to developers from across the East Coast, who discussed the development landscape at the GlobeSt. SPRING MULTIFAMILY Conference in Hollywood, Florida.
Some of the biggest challenges for developers are supply chain shortfalls and costs of labor.
With inflation off the charts, Rodrigo Paredes, senior vice president of development at Housing Trust Group in Miami, said some developers are stuck figuring out new ways to fulfill demand while also navigating supply chain delays. Some, he said, have even considered not buying lumber until costs go down. And in many areas – Florida included – Parades said developments are hiring out-of-state workers, such as electricians, which can drive up costs due to housing them.
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Melea VanOstrand
Melea VanOstrand oversees the Daily Business Review as ALM's Florida Bureau Chief. Email Melea at [email protected] or follow her on her Twitter or Facebook pages.
