Marlon Bray over at Altus recently shared the above chart on LinkedIn. Normally I only go on LinkedIn about once every quarter, if that. But thankfully our team likes to follow nerdy charts and so it got circulated around.
The chart is from Statistics Canada (table 18-10-0135-01 to be exact) and what it shows is the % change per annum of their construction price index, going all the way back to 1989. It is good context for the massive cost increases that we are all currently working through.
Increasingly, I think that most people in the industry feel as if we’re now reaching a tipping point. Costs — both hards and softs — cannot continue to go up like this. At some point supply will start to taper off or even shut off. The former has likely already started.