The cost of common construction materials climbed just 1.3 percent last year, but the price of gypsum products (drywall) is already up 14 percent this year, the Star Tribune reports. Lumber and wood products are also up nearly 11 percent.
"The days of low bids and relatively inexpensive construction costs are clearly numbered," Stephen Sandherr, CEO of Associated General Contractors of America, told the newspaper.
Construction permits for residential housing nearly doubled in the Minneapolis-St. Paul metro last year compared to the year before. Total value topped $1.59 billion in 2012, the highest in five years.
The Business Journal notes there are more than 10,000 new rental units being developed in the Twin Cities metro.