Home builders see ‘horizontal’ costs go vertical
by Mike Sunnucks | Rose Law Group Reporter
A house being built in San Tan Valley in May 2019/Pinal Partnership
Home builders and other residential real estate developers continue to see upward cost pressures as new developments sprout and more new homes get built in Maricopa and Pinal counties.
Jim Belfiore, president of Belfiore Real Estate Consulting in Phoenix, said “horizontal” costs related to putting in concrete foundations, infrastructure and utility hooks up have gone up along with landscaping and labor costs. Horizontal costs can also include broader infrastructure at new developments such as roads.
“Generally, all costs have been increasing,” Belfiore said. “There is a lot under construction.”
Andy Warren, president of Scottsdale-based Maracay Homes, is also seeing higher horizontal costs.
