The 3 “L’s: “Location, location, location” is a truism associated with the Boston real estate market. What I’m hearing from my construction contacts there could be another sort of 3 L truism: “Lighting, LED’s, Legislation.” This is all referring to the ongoing coronavirus and its impact on the construction trades, the skyrocketing price of construction materials, and the difficulty of obtaining them needed to build Boston high rise condos. While it’s true that the Boston real estate fundamentals—employment growth, household formation, tight inventory—continue to support an optimistic outlook, my construction contacts continue to report challenges regarding the supply chain.
About 30 percent of building materials imported to the U.S. come from China, making the country the biggest single supplier, according to Dodge Data. And though the share of materials coming from the country had already declined in 2019, possibly as a result of tariffs imposed by the U.S. government, a lot of raw material used to make products in other countries also originates in China.The Real Deal Blog has more details
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