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Sunday, January 01, 2006

 

Hurricanes driving up the cost of construction

Hurricanes driving up the cost of construction
Sunday, January 01, 2006
Ernest Beck
NEW YORK TIMES NEWS SERVICE

A worker puts shingles on a home under construction in Montgomery, Ala.


The hurricanes that battered the Gulf Coast and Florida last year devastated communities and left tens of thousands of people homeless. Consumers everywhere are likely to feel the effect of the storms as prices rise for construction and building materials.

Many of those materials were already rising in price, but within six months things might be much worse.

Tack $7,000 onto the cost of building a typical house in 2006, said Michael Carliner, an economist at the National Association of Home Builders.

Materials account for about a third of the cost of a new home, so the increase â¬Üâ¬Üwill have to be absorbed somewhere, most likely by consumers," he said.

Oakland, Calif., contractor Paul Winans ⬠president of the National Association of the Remodeling Industry ⬠said the price of kitchen cabinets has risen 10 percent; insulation, 14 percent; finished lumber, 10 percent; windows and skylights, 8 percent; and plaster and drywall, 15 to 20 percent. Materials for electrical work are up 15 to 20 percent, he said.



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