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After years of squabbling, in November 2021, a $1 TRILLION bi-partisan infrastructure bill was passed to improve the US' (often embarrassing) infrastructure. Lots of that money will be going into construction and construction-related projects.....and while the bill was passed in 2021, many of these projects will only start around now as governments generally move very inefficiently and slowly (unlike you and I, they are hardly ever held accountable, as they are not picking up the tab!)..... Included in this massive bill are:
* $110 billion of new funds for roads, bridges, and major projects,
* $11 billion in transportation safety programs
* $66 billion in freight and passenger rail, including potential upgrades to Amtrak and $39 billion into public transit systems.
* $17 billion in port infrastructure and $25 billion in airports to address repair and maintenance backlogs,
* $50 billion for projects to protect against droughts, floods and wildfires, and weatherization.
* $55 billion investment in clean drinking water
* $21 billion in environmental remediation, cleaning up pollution that harms the public health of multiple communities and neighborhoods.
* $73 billion investment in our power infrastructure including clean energy transmission, upgrading our power infrastructure, and building thousands of miles of new, resilient transmission lines
Add all of this up: that's a LOT of steel, concrete, copper, plastic, oil, etc - not to mention labor - to build all of this stuff. Now add in the fact that the US is UNDER-built by about 2 million homes......and then add in our aging home stock (average age about 39 years) that requires renovation, upgrades and improvements..... Some areas with newer homes with lax building codes need work a lot sooner. Most homes will require retrofitting to make them more energy efficient or withstand more extreme weather. All this is certain to keep the costs of all building-related materials and labor high for many years to come.
Replacement costs should be considered by all home buyers sitting on the fence who plan to live in their homes for at least the next 5-7 years (the average is well above 10 years!)......One more reason for buyers to buy now?
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