Has your home gone up in value over the past 12 months? The answer to this question is probably a big “YES”. Has the cost of new homes, townhomes or condos in your area increased in cost? The answer to this question is probably also a big “YES”. There are several reasons for these increases that we all are now enjoying but certainly one of the BIG reasons is the dramatic increase in the cost of materials which is now being followed by increases in the cost of labor.
While there are many factors that could be discussed as causes for these increases, a budget for capital assets based on past expenditures will be extremely inaccurate given this current environment of construction costs. Because communities must set the contributions to capital expenditures TODAY to be spent in the FUTURE, it is critical that an accurate method be chosen to project those future costs.