Multifamily Construction Costs: An Investor Guide

Multifamily Construction Costs: An Investor Guide

For multifamily investors and developers, construction costs remain one of the biggest expenses, and it looks like costs are only continuing to increase. Unfortunately, these climbing costs could be having a negative impact on the industry as a whole. In fact, in a 2018 report, the National Association of Home Builders linked construction cost increases to multifamily developers’ lack of confidence in the overall market. Due to these ballooning costs, it’s more important than ever for developers and investors to understand the exact nature of multifamily construction budgets, and why they keep rising so quickly.

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How to Choose a General Contractor for a Multifamily Construction Project

How to Choose a General Contractor for a Multifamily Construction Project

If you’re interested in developing or renovating multifamily housing, choosing a general contractor is one of the most important decisions you’ll make. Whether you’re a developer yourself, or simply interested in investing in a development project, it’s essential to understand a contractor’s role, and, just as importantly, what you need to know to select a qualified, professional contractor that will get the job done correctly.

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Hard vs. Soft Construction Costs for Multifamily Developers

Hard vs. Soft Construction Costs for Multifamily Developers

When it comes to investing in multifamily and commercial development projects, understanding and analyzing construction costs is key. Construction costs, which have been rising steadily for the last decade, have a significant impact on the overall profitability of an investment. They can generally be divided into two categories; hard costs and soft costs. Hard costs are those associated with physical building construction, while soft costs are intangible, and are typically associated with the planning, permitting, and financing of a construction project.

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