Rising Construction Costs

​Elliot Feuerstein is an officer of San Diego, California-based Mira Mesa Shopping Center, a marketplace designed to deliver the ultimate shopping experience. Working with Mira Mesa Shopping Center, Elliot Feuerstein works with architects and the city council to get project approvals, design, fund these projects, and complete them in first-class conditions.

The rising input costs for buildings caused by supply-side limitations have increased by 10-12 percent since 2021. The prices of essential building resources such as bricks, cement, steel, and labor have increased by over 20 percent. This increment will ripple across the construction industry, causing a significant increase in its other segments. Consequently, if building materials prices continue spiking, realtors and real estate companies will have lower profit margins, which may increase housing and real estate costs by as much as 10-15 percent.

As a result of this increase in costs, it won't be easy to produce budget-friendly housing and commercial buildings. Public buildings are some of the most costly facilities built. On average, building a standard shopping center costs about $24.9 million. The increase in building costs will make it more difficult for construction companies to build such shopping centers with profitable margins, and ultimately the consumer might suffer for it.

Elliot Feuerstein

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