Skyrocketing Building Costs , Could Stall Residential and , Commercial Development.<br />'Newsweek' reports that homebuilding costs in San Jose, <br />California, have reached record highs, reflecting <br />a more widespread problem in the United States.<br />According to a new report, builders in <br />San Jose are facing high interest rates amid <br />skyrocketing costs for both materials and labor.<br />According to a new report, builders in <br />San Jose are facing high interest rates amid <br />skyrocketing costs for both materials and labor.<br />In San Jose, the cost of building one unit of <br />affordable housing jumped up 24% in the past <br />year, climbing from $757,900 to $938,700.<br />Adrian Pedraza, a real estate broker and owner <br />of The California Homebuyer, said that <br />San Jose's issues are the result of scarce land, <br />high costs and "bureaucratic roadblocks." .<br />Adrian Pedraza, a real estate broker and owner <br />of The California Homebuyer, said that <br />San Jose's issues are the result of scarce land, <br />high costs and "bureaucratic roadblocks." .<br />It's become a huge challenge to <br />build affordable housing there and <br />in similar tech hubs. It's a perfect <br />storm for astronomical pricing, Adrian Pedraza, real estate broker and owner of <br />The California Homebuyer, via 'Newsweek'.<br />It's become a huge challenge to <br />build affordable housing there and <br />in similar tech hubs. It's a perfect <br />storm for astronomical pricing, Adrian Pedraza, real estate broker and owner of <br />The California Homebuyer, via 'Newsweek'.<br />'Newsweek' reports that the situation <br />in San Jose mirrors issues faced<br />by homebuilders across the U.S.<br />According to real estate consultant John Andrews, <br />California and the Southwest have seen the largest <br />price hikes due to unique environmental factors.<br />Insurance for construction is more <br />costly now, especially in states like <br />CA that have experiences a <br />disproportionate number of <br />natural disasters in recent <br />years, especially wildfires, John Andrews, commercial real estate consultant, <br />via 'Newsweek'.<br />Insurance for construction is more <br />costly now, especially in states like <br />CA that have experiences a <br />disproportionate number of <br />natural disasters in recent <br />years, especially wildfires, John Andrews, commercial real estate consultant, <br />via 'Newsweek'.<br />Experts have expressed concerns that high <br />building costs will lead to a loss of housing <br />and commercial development in the city.<br />When costs are too high to justify <br />potential returns, projects will <br />be shelved. This could lead <br />to a slowdown in residential <br />construction when the long-term <br />trend suggests that the <br />market needs the opposite, Danielle Hale, Realtor.com chief economist, via 'Newsweek'
