If you or someone you know worked through the last cycle: how long til hard costs down? How long is that lag? Few months? More than a few months? A year?
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I haven't taken plans out for pricing, but I've heard rumors they're already being dropped due to the current crisis. Not sure if it'll be temporary or not.
For labor, instantaneously. For product, who knows I'd be worried about supply chain.
bump
We are seeing pricing soften right now. Labor is down, subcontractors are less busy and material pricing is decreasing.
We are bidding a job in 45-60 days and feeling very good about the numbers.
In '09, costs started decreasing within a quarter and were probably lowest 3 quarters in, following which they started to come back up. Were proabably back to normal by Q4 '10/ Q1 '11. Decrease really varied city by city, some of them didnt really see much of a decline.
I have to disagree with this. Maybe you're in a different market, but construction costs were definitely not back to normal until 2012. Even then the pricing was still pretty favorable. From what we saw 2012 was somewhat of a recovery then after 2015 we began hitting new highs.
Would love for people to expand on this.
Presume it is simply a combination of less demand so lower labor/material cost?
How do you explain the supply chain side? For example, couldn't prices rise since demand will return all at once for materials that have basically been stuck at ports + lack of unfinished materials being queued to sent out?
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