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Damian Eallonardo Tapped by The Real Deal about Chicago Construction

Damian Eallonardo (Executive Vice President, Chicago) was recently featured on The Real Deal discussing how inflation rates have been affecting construction work in Chicago over the past few years.

Article Summary:

Construction costs in Chicago have been rising at a faster rate than in other major cities, although the pace of increase has slowed down. A study found that Chicago-area construction costs increased by 9.2% year-over-year in April, the largest jump among 12 major urban centers.

Factors such as supply chain disruptions, low interest rates, and increased development for warehouses and apartments drove up costs during the pandemic. However, efforts by the Federal Reserve to curb inflation through interest rate hikes have started to reduce the rate of increase.

Rising interest rates have made it harder for developers to secure financing, leading to a decrease in construction activity. Additionally, the easing of supply chain pressures and a slight decline in material costs have contributed to the slowdown.

Despite the slowdown, contractors may have to accept lower prices to secure jobs. Nationally, total construction starts dropped by 6% in the first five months of 2023.