Construction costs growth to slow

The credit crisis and problems in the housing market have created
some good news for builders: while construction costs continue to rise, the
increase is expected to slow down this year. After three years of a
skyrocketing rate of 12 percent, costs are expected to rise only 7 to 9.5
percent this year. This slowdown comes with a decrease in construction projects
after the glut of building projects started before the credit crisis subsides.
Already, competition between contractors is on the rise, with projects netting
as many as eight bidders this year, while last year builders were lucky to have
two. Construction costs remain mixed, however, as demand for different
materials varies.