Construction Costs During A Recession

1 Reply

Hi All,

I was planning on going forward with a 100k+ Euro renovation on April 1st to double my square footage. However, the market is expected to dip due to Coronavirus. Should I wait to Summer to see how construction prices will react once the market dips? Historically, how do construction costs mirror housing costs? Would love to get the communities insights on this.

Greg

The problem right now is there is a shortage of labor which results in increased demand and increased labor costs.  

With basically everything grinding to a halt right now and a bunch of renovation projects temporarily on hold, there will be a pent-up demand for labor later this year (hopefully when the virus is contained).  

So I wouldn't necessarily expect labor costs to go down in the Summer because contractors could be busier than ever (if things get back to normal).

However, if this thing continues to escalate, a lot of people could be looking for work which you might see some benefit of that...but I wouldn't count on it...

Hard to say, unprecedented times!