There is a simple correlation that often goes hand in hand with the housing and real estate down turn that is often missed by the media, it goes like this: slow time for the construction industry means that contractors are hungry. When contractors are hungry, there is more competition which means better prices for new constructions or renovations. The “word on the street” on the Big Island of Hawaii is that contractors are having a hard time. An insurance broker confided in me that her general contractor clients in Hilo are worried about the lack of new projects. A fellow architect expressed that his design work load is also slow. Of course, my assessment of the current local construction industry is without hard economic data, but our economy is also affected by the rest of the nation.
The time for design and new construction is now for those who can afford to build. It makes perfect sense. Only a year ago, my client and I were searching for bidders for our project, most general contractors where too busy to even give us bids. When contractors are busy, they will take on more work at a premium. Throwing a high bid at a set of plans and expect to get it was the norm because they are in high demand. Times were good for them, but not so good for owners with new constructions or renovations. The rule of economics apply without bias to the construction industry. Supply and demand. The same principal also applies in real estate; a seller’s loss is a buyer’s gain.
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