Why Are Canadian Construction Costs So High? (2018)
pedestrianobservations.com
Why Are Canadian Construction Costs So High? (2018)
1–10 of 146 posts
Re: Why Are Canadian Construction Costs So High? (2018)
#2Recent and related: https://news.ycombinator.com/item?id=21589204
Re: Why Are Canadian Construction Costs So High? (2018)
#3If you want some fun, read the investigation reports about the corruption surrounding construction business and politicians in Montreal, QC. Not sure which year it was, could be 2015.
Re: Why Are Canadian Construction Costs So High? (2018)
#4Disappointingly, the answer from the article is "I don't know."
This article could be condensed to a table.
Re: Why Are Canadian Construction Costs So High? (2018)
#5This is the same case in US. The cost of construction has far outpaced inflation by order of a couple of magnitudes while technology keeps getting cheaper and labor prices are still stagnant for decades. Amazingly, it's exactly reverse case in China where construction prices have fell through the roof.
Re: Why Are Canadian Construction Costs So High? (2018)
#6This is why (for U.S. at least) https://www.facebook.com/watch/?v=784223122033567
Re: Why Are Canadian Construction Costs So High? (2018)
#7In any market, there’ll be a limited number of contractors capable of doing a really big job like building a railway line (or constructing an aircraft carrier, or a fighter jet, or whatever).
These contractors have a game theoretic choice to make: either they work hard to compete on price, or they inflate their budgets and count on their competitors to do so too, safe in the knowledge that there’s enoigh projects going around that everyone can have a nice fat slice of pie.
Theoretically a new competitor could enter the market and eat everyone’s lunch, but... all the institutional knowledge on how to build a train line or aircraft carrier belongs to the big players and it’s too hard to enter.
The difference in construction costs between various different markets seems to just be different game theoretic equilibria at work.
Re: Why Are Canadian Construction Costs So High? (2018)
#8This is the same case in US. The cost of construction has far outpaced inflation by order of a couple of magnitudes while technology keeps getting cheaper and labor prices are still stagnant for decades. Amazingly, it's exactly reverse case in China where construction prices have fell through the roof.
"fell through the roof"; I'm not sure whether that's high and went low or low and went high. From the context I'm assuming that means its gotten very cheap?
Re: Why Are Canadian Construction Costs So High? (2018)
#9If you want some fun, read the investigation reports about the corruption surrounding construction business and politicians in Montreal, QC. Not sure which year it was, could be 2015.
Montreal has a never ending construction. A colleague of
mine says the mafia controls the construction business in Montreal. Seems like corruption is a tad high in Québec than Rest of Canada
Re: Why Are Canadian Construction Costs So High? (2018)
#10This is the same case in US. The cost of construction has far outpaced inflation by order of a couple of magnitudes while technology keeps getting cheaper and labor prices are still stagnant for decades. Amazingly, it's exactly reverse case in China where construction prices have fell through the roof.
When you really think about it deeply, better production should depress prices because of econ 101.
However, the FED induced inflation in assets has made everything out of control.