Higher material costs hang over construction industry

NEW YORK

So far, it doesn’t appear that higher prices have prompted the industry to put up fewer buildings.

“I have not seen a project killed. I have just seen aspects of the scope of the project scaled back,” Drill said.

But the higher costs promise to ripple through the nation’s economy because they will become an added burden for storeowners and businesses that rent space in new commercial buildings. Faced with higher rents from developers who paid more to put up their buildings, these businesses will end up charging their customers more for goods and services.

AP