Regarding construction expenses, my clients in the industry routinely inform me that overall costs continue to rise. You just can’t cite falling gypsum prices and call it a day. My understanding is that material prices in many categories are up, including roofing, siding, glazing, doors, structural steel and pre-cast concrete. In addition, I have been told that labor costs are up. Further, I am on the receiving end of the occassional rant regarding outlandish insurance premiums.

Where costs may go in the future is speculative, but my sources assure me that overall costs to date are not going down. Any recent decreases in specific line-item costs must also be viewed within the context of what has happened over the past 3 years in that category; ie, beginning in about 2004 material costs in many categories increased dramatically. Perhaps radelow can provide additional input regarding costs.