housing prices. Three things this likely for the construction industry.
• Increased project costs. With construction materials making up most overall project expenses, even a small increase can significantly inflate project budgets, which can lead to delays in production, cost overruns and increased financial risk for contractors and developers.
• Reduced profit margins. Contractors may find it competitively difficult to price projects based on market fluctuations, while simultaneously covering their own rising expenses and costs.
• Housing affordability. Looking at the bigger picture, the increase in the cost of con-
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