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I do agree with your observations on the Boston construction market.

Bulldozers and electric power tools did a lot for labor productivity in construction. But those gains are long behind us. There's not much in the computer/internet/cell phone revolution that let's a man or woman dig holes, hang drywall or sweat pipes faster. But, as productivity and wages in other fields advance, construction wages have to keep pace in order for the industry to hold onto its labor force. The land is not going to get cheaper. The labor is not going to get cheaper. Productivity is not going to advance that much. Wood is not getting cheaper, as forests are either cut down or increasingly protected. Plastics are petroleum based and not going to get cheaper. Steel? Don't think so. Codes get more stringent all the time. Osha and environmental rules keep getting tighter. Litigation costs keep rising (litigation seems to be a major input to the construction process, which many theorists would overlook). Disposal costs (another major input)keep soaring.

I must say, a secular decline in construction costs is one of the more puzzling predictions I have come across.
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