Construction of Miami Real Estate Declining Due to Material Shortages
Concrete, diesel fuel, roofing shingles, insulation and PVC pipe are already in short supply within the Miami real estate construction market, but the shortages are about to get far worse "as materials are diverted to help rebuild the Gulf Coast."
Builders and contractors are stockpiling supplies that they won´t need for months for fear of rumors about a $5 to $8 dollar per cubic foot increase in the price of concrete and a 10 to 16 percent rise in the cost of lumber.
Developers are also protecting themselves by including disclaimers in their estimates that inform the Miami real estate buyer that "prices are subject to change because of the volatility in the industry." If anyone is going to absorb the extra costs, it will have to be the end-user.
Miami real estate owners currently waiting for the completion of their homes may find themselves waiting longer because of the shortage of labor and supplies. The construction of new Miami real estate is also expected to decline dramatically over the next year.
Builders and contractors are stockpiling supplies that they won´t need for months for fear of rumors about a $5 to $8 dollar per cubic foot increase in the price of concrete and a 10 to 16 percent rise in the cost of lumber.
Developers are also protecting themselves by including disclaimers in their estimates that inform the Miami real estate buyer that "prices are subject to change because of the volatility in the industry." If anyone is going to absorb the extra costs, it will have to be the end-user.
Miami real estate owners currently waiting for the completion of their homes may find themselves waiting longer because of the shortage of labor and supplies. The construction of new Miami real estate is also expected to decline dramatically over the next year.
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