ATLANTA, Ga. (CBS46) -- The COVID-19 pandemic is now causing costs in the housing market to jump to new heights.
“What’s going on now is even getting bigger and bigger and bigger,” Jeff Milligan, managing member of We buy any house LLC said.
Jeff Milligan told CBS46 he has over 25 year of experience investing in residential and commercial spaces in metro Atlanta. Milligan explained that the pandemic is creating a new normal in his industry.
“A lot of building and stuff stopped during COVID, so there was not a whole lot of construction going on. Now that COVID is almost over, construction is starting to pick up and of course just like the airfare has risen, also the lumber prices have risen,” Milligan explained.
Milligan said while that seems like a simple fact, it’s creating a huge problem.
“The demand is back again, but there’s not enough supply. Since there’s not enough supply, the market prices go up and here we are,” Milligan told CBS46 News.
It’s why he showed up to the Build Expo in hopes of creating relationship with construction pros.
“We’re an engineering firm that applies construction materials to reinforced concrete,” Sergio Dalmau President of PTE system international said.
Well, it turns out the other side of business is feeling the pitch as well.
“The cost of materials are through the roof, freight, getting raw materials is through the roof. You name it it’s up,” Dalmau told CBS46 NEWS.
Dalmau said he’s had to look into new ways to reduce construction cost. His fear is the pandemic coupled with the rising cost may lead developers to start postponing or canceling projects.
“There’s this new strain of Delta or whatever it’s called going around and people are starting to get worried about future shutdowns. I think if they did a shut down that would be detrimental not only to our economy by the construction industry in particular,” Dalmau explained.
However, Dalmau said if we get hold on this pandemic he believes prices could return to normal as early as next year.