We're renovating a bathroom right now. The costs are really surprising. I spoke with a neighbor (who also works in real estate) because I knew he had done a major renovation in 2022. He told me that he had originally priced that renovation in 2017 and that the cost double (!!) from 2017 to 2022. Add in some inflation for the last 3 years. OMG.
Regardless, I am whole heartedly for more new construction, and removing the regulatory barriers to new supply.
Yeah. Even the broad price index for residential investment tracked by the BEA is up about 50% since 2017. I think there is a combination of cyclical price trends and regulatory burdens here, so we should see some reversal on costs, though probably not complete.
It just goes to show how bad the urban land inflation problem is that even with all those rising costs, improvements have been an increasing portion of residential investment.
We're renovating a bathroom right now. The costs are really surprising. I spoke with a neighbor (who also works in real estate) because I knew he had done a major renovation in 2022. He told me that he had originally priced that renovation in 2017 and that the cost double (!!) from 2017 to 2022. Add in some inflation for the last 3 years. OMG.
Regardless, I am whole heartedly for more new construction, and removing the regulatory barriers to new supply.
Yeah. Even the broad price index for residential investment tracked by the BEA is up about 50% since 2017. I think there is a combination of cyclical price trends and regulatory burdens here, so we should see some reversal on costs, though probably not complete.
It just goes to show how bad the urban land inflation problem is that even with all those rising costs, improvements have been an increasing portion of residential investment.
https://fred.stlouisfed.org/graph/?g=1GBO7